9. (2 points) If the T-note futures price is $994, then which bond is the cheapest to deliver? Use the following information to solve questions 10-11. The table below contains information on semi-annually compounded zero-coupon bonds with a value of $1. Years to Maturity Zero-Coupon Yield 2.50% 3.25% 4.15% 4.85% 6.60% Zero-Coupon Prices $0.9755 $0.9376 $0.8841 2 4 5 10. (1 point) Assume the 1-, 2-, 3-, 4-, and 5-year gold forward prices are $1,710. $1,780, $1,885, $1,930, and $2,000, respectively. A. What is the 4-year gold swap price? B. Is the gold forward market in contango or backwardation? Why? 11. (1 point) Assume the 1-, 2-, 3-, 4., and 5-year gold forward prices are $1,710, $1,780, $1,885, $1,930, and $2,000, respectively. A. What is the 5-year gold swap price? 12. (1 point) Bond 1 is a 5-year zero-coupon bond. Bond 2 is a 5-year bond with a 4% coupon rate. Bond 3 is a 3-year bond with a 4% coupon rate. Assume all three bonds have a face value of $1,000 and are annually compounded. List the three bonds in order of their sensitivity to interest rate risk from least sensitive to most sensitive. Specifically, identify which bond is the most risky and which bond is the least risky. 9. (2 points) If the T-note futures price is $994, then which bond is the cheapest to deliver? Use the following information to solve questions 10-11. The table below contains information on semi-annually compounded zero-coupon bonds with a value of $1. Years to Maturity Zero-Coupon Yield 2.50% 3.25% 4.15% 4.85% 6.60% Zero-Coupon Prices $0.9755 $0.9376 $0.8841 2 4 5 10. (1 point) Assume the 1-, 2-, 3-, 4-, and 5-year gold forward prices are $1,710. $1,780, $1,885, $1,930, and $2,000, respectively. A. What is the 4-year gold swap price? B. Is the gold forward market in contango or backwardation? Why? 11. (1 point) Assume the 1-, 2-, 3-, 4., and 5-year gold forward prices are $1,710, $1,780, $1,885, $1,930, and $2,000, respectively. A. What is the 5-year gold swap price? 12. (1 point) Bond 1 is a 5-year zero-coupon bond. Bond 2 is a 5-year bond with a 4% coupon rate. Bond 3 is a 3-year bond with a 4% coupon rate. Assume all three bonds have a face value of $1,000 and are annually compounded. List the three bonds in order of their sensitivity to interest rate risk from least sensitive to most sensitive. Specifically, identify which bond is the most risky and which bond is the least risky