Apex Corp. which primarily exports its products has an outstanding debt issue that

trades at a yield with an additional 1%p spread on top of the Treasury yield curve

due to the companys operational risk exposure to foreign exchange rate volatility.

How much is fair value for Apexs 3-year bond with a 10% coupon rate with annual

payments on a $1,000 par value? Round up your calculation to the second decimal

point. (e.g the yield with 1%p spread on 5% spot rate is 6%)

[Term Structure] Yield Maturity Yield 1 year Mimi Ni Mimi NN 3.00% 2 years 3.50% 3 years 3.70% 4 years 3.80% 3.70% 5 years 2.56 2 year 2 years 3 years 4 years 5 years