$1.$ You are given one observation of the U$.$S$.$ Treasury par yield curve, see Table $1.$ Determine $1-$year, $2-$year, and $3-$year spot rates: s$1,$ s$2,$ and s$3.$

$2.$ You are given financial statements of a corporation, see Appendix. Use the statements for full$-$year of $2023$ to calculate the key financial ratios$1$ listed in Table $2,$ p$\mathrm{.}4,$ for this company. Then, compare the obtained ratios with values in Table $2$ and determine which credit rating level is most appropriate to describe this company$$s corporate credit risk. Identify appropriate risk premiums for this company

from the Figure $1,$ below.

$3.$ This company has the following bond outstanding and being trade in the market: $3\%-$coupon rate and $10-$year maturity, issued in $2017$ and to be redeemed in $2027\mathrm{.}2$ Hence, today this bond has remaining maturity of $3$ years. Let$$s assume this bond has face value of $$1,000$ and it pays coupons on the annual basis $$ use it a benchmark to answer the following questions.

QUESTIONS: If the company decides to issue new $3-$year bond now, then:

$$ What is the price$/$present vale of such a bond, if the coupon rate is the same as on the above mentioned outstanding bond? Use appropriate spot rates and risk premiums from $1$ and $2$ to calculate the discount rates.

$$ The company must issue this new bond at par price, then what is the coupon rate it will pay to investors? Circle the proper answer: $($i$)$ less than $3\%,($ii$)$ equal to $3\%,($iii$)$ more than $3\%.$Table $1$: U$.$S$.$ Treasury par yield curve rates ${?}^a$

$\backslash$table$[[$Date$,1m,3m,6m,1yr,2yr,3yr,5yr,7yr,10yr,20y$

SHOW YOUR WORK$/$CALCULATIONS