a. Your clients are worried about the purchasing power of any funds they will receive. What can you tell them with regard to the average expected ination rate over the next 5 years? (5%) b. Construct a Yield Curve to show your ciients, what should be the prevailing interest rate on 5-year Treasury Bonds maturing in 2026? (10%) c. From the same Yield Curve, what is the prevailing interest rate on 7-year AA Corporate Bonds maturing in 2028? (10%) d. On Corporate Bonds of the same maturity and 'eld may have different mixes of discount to redemption price (face or \"Par" value) and the coupons regularly paid. For your two clients, what would you recommend in the mix of discount to Far and Coupon? Who should have most of the return in the discount and who should have most of the return in the Coupon? Please explain your reasoning. (15%) e. Given the return today offered on AA Corporate Bonds maturing in January 2027, paying a 5% coupon what would be the Bond Price? What would happen if the Coupon were increased? You may assume the redemption or face value of the bond is 10,000 and the Coupon is paid twice yearly or semi-annually. [Hint the formula in Excel for bond pricing might be useful.] Explain your results. (20%) f. What is the Yield on the above bond, given the return and the Coupon offered? [Hint the formula in Excel for bond pricing might be useful.] Explain your results. What would happen to the Yield if the Prevailing interest rate as shown on the Yield Curve were to fall? (20%) g. Given the preferences of your two clients, and the possibility of changes in the Yieid Curve, who has more Price Risk to their Corporate Bond and who has more reinvestment risk? Piease explain your reasoning. (20%)