1. Zero-coupon bonds with face value $100, redeemable at par, are priced as follows: bonds redeemable in exactly 1 year are priced at $98. bonds redeemable in exactly 2 years are priced at $93, bonds redeemable in exactly 3 years are priced at $89, bonds redeemable in exactly 4 years are priced at $85.50. Find the yield to maturity of a bond redeemable at 103% of the face value in 4 years with annual coupons of 5%. 2. Risk-free force of interest (t) at time t is given by for 0 5. 8(t) = 0.03, (a) Find a(t). (b) A $100 par value 7-year bond has 8% semiannual coupons and is redeemable at 107%. Find the price of the bond. 3. The cash prices of 3-month and 9-month zero-coupon bonds with face value 100 are 98.0 and 94.0, respectively. A 1-year semiannual coupon bond that pays coupons of 4 every 6 months from now currently sells for 99.50. Calculate the force of interest in the periods in years): (0, ) and ,1). Hence, calculate the spot rate of interest for maturity of 1 year