2. A Mexican Brady bond has a 7.25% fixed coupon rate, a maturity of 6 years, and a par value of $1,000. This bond has a guarantee of the last year's (year 6) coupon payment and principal (collateralized by Treasury securities). The bond makes annual coupon payments. (18 points) | Maturity (years) | US Treasury Spot Rate | Mexican Govt Spot Rate 0.16% 5.28% 0.20% 5.37% 0.24% 5.49% 0.30% 5.55% 0.36% 5.60% 0.53% 6.12% a) What should be the value of this Brady bond? b) What is the blended yield of this bond? c) What is the stripped yield of this bond? d) What is sovereign spread on this bond? e) The Mexican Brady bond contains two additional features: (1) Par bond and (2) step-up. Please explain what each feature means and how they help attract fixed income investors to purchase this Brady bond. 2. A Mexican Brady bond has a 7.25% fixed coupon rate, a maturity of 6 years, and a par value of $1,000. This bond has a guarantee of the last year's (year 6) coupon payment and principal (collateralized by Treasury securities). The bond makes annual coupon payments. (18 points) | Maturity (years) | US Treasury Spot Rate | Mexican Govt Spot Rate 0.16% 5.28% 0.20% 5.37% 0.24% 5.49% 0.30% 5.55% 0.36% 5.60% 0.53% 6.12% a) What should be the value of this Brady bond? b) What is the blended yield of this bond? c) What is the stripped yield of this bond? d) What is sovereign spread on this bond? e) The Mexican Brady bond contains two additional features: (1) Par bond and (2) step-up. Please explain what each feature means and how they help attract fixed income investors to purchase this Brady bond