A. TREASURIES AND THE FED 1. In class we learned that Treasuries pay semi-annual coupons and have $100 par val- ues. Correspondingly, we use semi-annual period-specific discount rates to discount these cash flows. Price the bonds J, K, and L using the following set of rates. After pricing the bonds, calculate their yields to maturity. Year Rate (%) 0.5 1.0 1.5 Coupon Years to Bond Rate (%) Maturity 2 0.50 0.75 1.25 1.5 2.2 2.1 J K L 2.0 2.5 3.0 5.00 8.00 0.00 3 1 2. In this question you will read into the details behind a Treasury auction that we quickly covered in class and describe concisely how one works. In your answer identify 1) the main set of players that distribute the securities and 2) the difference between competitive and non-competitive bids. A. TREASURIES AND THE FED 1. In class we learned that Treasuries pay semi-annual coupons and have $100 par val- ues. Correspondingly, we use semi-annual period-specific discount rates to discount these cash flows. Price the bonds J, K, and L using the following set of rates. After pricing the bonds, calculate their yields to maturity. Year Rate (%) 0.5 1.0 1.5 Coupon Years to Bond Rate (%) Maturity 2 0.50 0.75 1.25 1.5 2.2 2.1 J K L 2.0 2.5 3.0 5.00 8.00 0.00 3 1 2. In this question you will read into the details behind a Treasury auction that we quickly covered in class and describe concisely how one works. In your answer identify 1) the main set of players that distribute the securities and 2) the difference between competitive and non-competitive bids