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10. The current market price of a one year discount bond with a face value of $100 is $ 89.28. Also, the current market price

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10. The current market price of a one year discount bond with a face value of $100 is $ 89.28. Also, the current market price of a two year 25% coupon bond with a face value of $2000 is $2101.44. (12 points) a) Draw the timeline associated with each bond. b) Determine the spot rates between year 0 and year 1 (-1) and between year 1 and year 2 (12) c) Use r2 from part b) to determine the price of a two year discount bond with a face value of $4600

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