Consider the following par bond (ie coupon rate=yield):

Maturity: 1 2 3 4 5 YTM: 5%; 4.5%; 4%; 3.5%; 3.2%

Q1a.Calculate discount factor for all 5 years (10 points)

Q1b.Calculate spot rates for all 5 years (10 points)

Q1c.Calculate forward rates for all 5 years (10 points)

Q1d. Price a 5 year 10% coupon bond. What is the YTM for the bond (10 points)

Q1e. Price a 5 year 2% coupon bond. What is the YTM for the bond (10 points).