1. If a Corporate Debenture with a coupon rate of 5.4% and YTM of 4.8% has a maturity date of 3/30/41, what would its price be (assuming semiannual coupons)? (2 points) a. Why is the price a premium or discount to par? Briefly explain. (3 points) b. What is unique, in terms of how this bond is secured/collateralized and taxability of coupons, about this particular bond? (4 points)

2. Understanding how a yield curve is commonly used to forecast the expected change in direction of interest rates, briefly explain how you might interpret the steepening of the curve whereas a 20-year bond offers a much higher YTM to that of a 2-year bond? (7 points)

Please show in excel, if they can be answered that way. Thanks!