7. You are in charge of the bond trading and forward loan department of a large investment bank. You have the following Y TM's for five default-free pure discount bonds as displayed on your computer terminal:- 0 1 N 3 4 5 Years to Maturity YTM; 0.06 0.065 0.07 0.07 0.065 0.08 where YTM; denotes the yield to maturity of a default-free pure discount bond maturing at time j. 7(a). A new summer intern from Harvard has just told you that he thinks that 3-year treasury notes with annual coupons of $100 and face value of $1,000 are trading for $1,000. Would you ask the intern to recheck the price of this coupon bond? If so, why? If there is one actually traded for $1,000, how would you take this opportunity? 7. You are in charge of the bond trading and forward loan department of a large investment bank. You have the following Y TM's for five default-free pure discount bonds as displayed on your computer terminal:- 0 1 N 3 4 5 Years to Maturity YTM; 0.06 0.065 0.07 0.07 0.065 0.08 where YTM; denotes the yield to maturity of a default-free pure discount bond maturing at time j. 7(a). A new summer intern from Harvard has just told you that he thinks that 3-year treasury notes with annual coupons of $100 and face value of $1,000 are trading for $1,000. Would you ask the intern to recheck the price of this coupon bond? If so, why? If there is one actually traded for $1,000, how would you take this opportunity