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All sub-questions a) - I) relate to the following information: You observe the trading price of the following annual zero-coupon and coupon paying Government (risk-free)

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All sub-questions a) - I) relate to the following information: You observe the trading price of the following annual zero-coupon and coupon paying Government (risk-free) bonds: You use these bond prices to derive the pure yield curve. Importantly, you have been told that the pure yield curve is flat into perpetuity from year 4 onwards. All bonds trading in the market have a face value of $100. This question (parts a - I) is worth 15 marks in total. For each part, if you enter the correct answer you will receive full marks (even if you don't show working). If you choose to show working, and get the answer incorrect, you may receive part marks. If you simply enter the incorrect answer and do not show working, you will not receive any part marks

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