a. In the Blackboard site, go to ClassCash Markets and look at the results for Series E bonds. Click on the tab that says "Demand DE". What explains the difference in demand (and price) between Series D and Series E bonds?

b. Find the yield to maturity for Series D bonds.

c. Find the yield to maturity for Series E bonds.

d. Using the information from b) and c), derive a yield curve for ClassCash bonds.

Sheet 4: demandDE Demand for Bonds Series D and E Price 9mm Demand for D Demand for E $40.00 1 $30.00 2 1 $25.00 2 3 $20.00 2 10 $16.50 2 12 $16.00 5 13 $15.00 11 14 $14.50 13 14 $14.00 20 14 $13.13 27 14 $13.00 29 14 \fDemand for Bonds, Series E 06/14/2022 Matures on July 1, F = 12 Price Quantity Cumulative $40.00 $25.00 3 $20.00 10 $16.50 12 $16.00 13 $15.00 14 AUNNO- - NON $12.00 23 $11. 10 25 $10.75 27 $10.00 30 $9.00 34 $7.00 17 51 $5.25 10 61 $5.00 4 65 $4.00 36 101 $3.00 8 109 $2.63 7 116 $0.03 80 196 total 196 In the Series E market, a Dutch auction is used The price paid is the bid price of the 100th bond. The bid price of the 100th bond is $4.00 Everyone who bid at $5.00 or higher will receive their full allocation. The bids of $4.00 will proportionally divide the remaining 35 bonds. Those who bid below $4.00 will not receive any bonds in this market.