(b)

(c)

(d)

Excel Problem. Suppose that the one-year interest rate is 3% APR, the two-year interest rate is 4% APR, and the 3-year interest rate is 5% APR, all compounded semi-annually. (10 points) Find the price of a three-year 5% coupon bond paying annual coupons with face value of $100. (10 points) Compute the coupon rate for a three-year par coupon bond paying annual coupons. a (10 points) Compute the yield-to-maturity for the bonds in (b) and (c)