4. The term structure and yield curve of a Treasury bond is as follows. ( 15 points total) (1) Apex Corp. which primarily exports its products has an outstanding debt issue that trades at a yield with an additional 1% p spread on top of the Treasury yield curve due to the company's operational risk exposure to foreign exchange rate volatility. How much is fair value for Apex's 3-year bond with a 10% coupon rate with annual payments on a $1,000 par value? Round up your calculation to the second decimal point. (10 points) (e.g the yield with 1% p spread on 5% spot rate is 6% ) P=100/1.04+100/(1.045)2+1100/(1.047)3=1,146.14 4. The term structure and yield curve of a Treasury bond is as follows. ( 15 points total) (1) Apex Corp. which primarily exports its products has an outstanding debt issue that trades at a yield with an additional 1% p spread on top of the Treasury yield curve due to the company's operational risk exposure to foreign exchange rate volatility. How much is fair value for Apex's 3-year bond with a 10% coupon rate with annual payments on a $1,000 par value? Round up your calculation to the second decimal point. (10 points) (e.g the yield with 1% p spread on 5% spot rate is 6% ) P=100/1.04+100/(1.045)2+1100/(1.047)3=1,146.14