a) What is a zero-coupon bond? What is the value of a zero-coupon bond with a par value of 100 that matures in 10 years with a yield to maturity of 5% per annum? b) The term structure of interest rates in the economy is given by the following schedule: Maturity Rate (per annum) 1 0.72% 2 0.81% 3 1.02% 4 1.23% i. What is the price of a 100, 4-year, 5% coupon bond? ii. What is the yield to maturity of a 100, 2-year, 10% coupon bond? c) Vasicek (1977) introduced a model describing the evolution of interest rates. Explain in your own words the model and its properties, especially its limitations in describing interest rates. Use equations where necessary