Assume all bonds in these problems are semi-annual bonds with $1000 par value. This bond quote is provided for problems 1,2 , and 3. 1. Calculate the yield to maturity for the following corporate bond. (NOTE: bond price quotes are in percentage terms, so a bond at par value is priced at " 100.00 ) 2. If you buy the Boeing bond above today, and sell it 2 years later, what is the price of the bond at that time if the yield to maturity is 4.50% ? 2(b) What is your annualized expost (realized) rate of return on this investment (buy now, sell in 2 years). Use semi-annual compounding to compute your return. 3. The term structure of interest rates for US Treasury securities is given below. Compute the credit spread on the Boeing bond quoted above. 2year=2.51%,5yr=2.82%,10yr=3.40%,20yr=3.75%,30yr=4.05%. 4. A corporate bond paying semi-annual interest has a coupon rate of 7% and is currently priced at 105% of par. If there has been one month ( 30 days) since the last interest payment, what is the invoice price on the bond? How much of that price is accrued interest? 4. US Treasury Strips are zero-coupon securities. Suppose you wish to purchase a US Treasury Strip that matures exactly 8 years from now. If the yield on comparable 8-year US Treasury securities is currently 3.20%, what is the correct price quote for this bond? (Use annual compounding) 5. The current nominal interest rate is 4.0%, and the inflation rate is 9.0% a. What is the real rate of return? b. In order to earn a real rate of return of 3.0%, what should the nominal interest rate be