1. Suppose you are considering purchasing some zero-coupon bonds, with par values of $2,500 each. They all mature in seven years, and right now the price on each of them is $2,098.42. Determine the yield to maturity. Now suppose a new president is elected, and as a result the bonds' prices fall to $1,947.66. What's the new yield? 2. Your rich uncle has just died and left you a bond with a maturity date of 3/15/2032. You decide to sell it today, which happens to be 1/24/2017. You note the bond has a 7.76 percent coupon, paid semi-annually. Checking the current Treasury yield curve shows the following: | Maturity 5 Yr 7 Yr 10 Yr 20 Yr | 30 Yr | Yield | 1.95% | 2.28% | 2.48% | 2.79% 3.05% Using your best reasoning skills and a bond calculator from our course: a. Discuss how you will arrive at the YTM: b. Determine the dirty price of the bond: b. Determine the clean price of the bond: c. How much accrued interest will you pocket