17. The zero-coupon yield curve is given by y(T) = 0.04 0.035e -0.57 T>0. (a) Sketch y(T). (b) Determine the price of a two-year bond paying a semi-annual coupon of 3% on a face value of $1,000. (c) The yield on a two-year zero coupon bond is y(2) = 0.02712. Show that the yield (as a continuously compounded rate) on the bond from (b) is not 2.712%. (d) In (e) you saw that the yields on the two-year zero and the two-year coupon bond are different. Why aren't they the same? In particular, why is the yield on the coupon bond lower? 17. The zero-coupon yield curve is given by y(T) = 0.04 0.035e -0.57 T>0. (a) Sketch y(T). (b) Determine the price of a two-year bond paying a semi-annual coupon of 3% on a face value of $1,000. (c) The yield on a two-year zero coupon bond is y(2) = 0.02712. Show that the yield (as a continuously compounded rate) on the bond from (b) is not 2.712%. (d) In (e) you saw that the yields on the two-year zero and the two-year coupon bond are different. Why aren't they the same? In particular, why is the yield on the coupon bond lower