31) What is the YTM of a 3 year mortgage of $10,000 with an annual payment of $4000? 32) What is the annual YTM of a 6 mon'i maturity Treasury bill? It has a price of $975 and it will pay $1000 when it matures. 33) Current interest rates are :1 year 6%, 2 year 5%, 3 year 4%. According to the pure expectations theory, what is the one year interest rate for the next two years? 34) Two years ago you bought a 3 year $1,000 faoe value bond wi'i a 2% coupon for $1000. This year you must sell it after receiving the second coupon. 'What is the prioe you receive if current market rates are 5%? What is the YTM of the buyer of your bond? 35) You wish to make a loan earning 3% in real terms. If current CM is 1.15 and you think it will be 1.23 next year, what nominal interest rate will you charge? If the CPI actually turns out to be 1.20, what will be your actual ear-post real return? 36) What is the present value of a security that pays you $1040 in two years and $1061.21 in three years if the current interest rate is 2%? 37) Using the explanation given in class, why does an inverted yield curve predict a recession? 38) Compare the value of 2 different maturity 10% coupon bonds; a 2 year vs. a 5 year when current interest rates are 5%. Which would you prefer to be holding and why