3. (Y ield-To-Maturity) You have just bought a 9% coupon $1,000 face-value bond with 3 years until maturity for $990. (a) (4 points) Construct the timeline that represents the discounted cash ow and write down the equation that would calculate the yield-to-maturity. (b) (4 points) Use Excel to solve for the yield-to-maturity. What is the formula you would write to solve for the yield-to-maturity? Report your answer. (c) (3 points) You have held this bond for one year and eamed the rst coupon interest. Unfortunately, you have to sell this bond for $1,000 to Firm A at the end of this one-year period. Calculate the actual return. (d) (3 points) What is the yield-to-maturity for Firm A who bought the bond from you in ((1)? Explain your answer. (Hint: The answer is an exact percentage, virtually no calculation needed.) (e) (3 points) Firm A then immediately sells this bond to Firm B for $1,180. What is the yield-to-maturity for Firm B? Explain your answer. (Hint: The answer is an exact percentage, virtually no calculation needed.)