7, (10 points) Assume y = 1.5%, and also assume that the one-period spot rate next period can take the following two values with equal probability: y = 2.02% and yd = 1.11%. Assume tha the market price of risk 2=0.5. Use CAPM for bonds to calculate the current price of a two-period _E(RET')-yi bond (M=100). Also, calculate the Sharpe ratio of the bond investment: SR2 = (RET) 7, (10 points) Assume y = 1.5%, and also assume that the one-period spot rate next period can take the following two values with equal probability: y = 2.02% and yd = 1.11%. Assume tha the market price of risk 2=0.5. Use CAPM for bonds to calculate the current price of a two-period _E(RET')-yi bond (M=100). Also, calculate the Sharpe ratio of the bond investment: SR2 = (RET)