1. Consider a 5-year bond with a coupon rate of 4.5% (paid annually) and a yield to maturity of 5.2%. The face value is $1,000. a. Draw the timeline, showing all the cash flows that the bond will pay until maturity. b. Calculate the bond price. To calculate the bond price, use both formulas on slide 7 : i. First calculate the bond price without using the annuity formula: P0=1+YTMC+(1+YTM)2C+(1+YTM)3C++(1+YTM)NC+(1+YTM)NFV ii. Then calculate the bond price using the annuity formula for the coupons: P0=YTMC(1(1+YTM)N1)+(1+YTM)NFV