1. The following question is about bond valuation. (a) A two-year discount bond with face value $1500 is issued today. The effective discount rate for this bond is 6%. i. (1 point) What is the bond price today? ii. (1 point) After one year and this bond is still on sales, what would the bond price be? iii. (1 point) If the effective discount rate increases, how will the bond price change? (b) A discount bond with face value $2000 is issued today. It is priced at $1000 today. i. (2 points) If the YTM of the bond is 41.24% per year, what is the maturity of the bond? ii. (2 points) If the maturity of the bond is 5 years, what is the YTM