1. Assume the following term structure of Treasury interest rates: Interest rates are quoted as APRs, compounded semi-annually. (a) What is the price of a 6% Treasury coupon bond with semi-annual coupons that matures in exactly 2 years and has a par value of $1,000 ? (b) What is the price of a 2-year $1,000 Treasury zero-coupon bond (a $1,000 STRIP)? (c) What is the current yield of the bond in part (a)? What is the current yield of the STRIP in part (b)? (d) Which would have a higher yield-to-maturity: the bond or the STRIP? Explain. (e) Would the YTM of a 2.5-year 3\% coupon Treasury bond be more than, less than, or equal to 4.27% ? Explain. (f) Would the YTM of a 2.5-year 9\% coupon bond be more than, less than, or equal to the YTM of a 2.5 -year 3% coupon bond? Explain