Consider three US Treasury securities that mature in 6, 12 and 18 months. Each of them has a face value of $1,000. Coupon payments are made semi-annually on these bonds, and the most recent coupon payment was made yesterday. The coupon rates (in annual terms) and current prices of these bonds are given in the table below. Maturity Coupon Rate Current Price 6 months 3.75% $979.57 12 months 3.5% $922.90 18 months 3.0% $908.36 Using the 6 and 12 month maturities, compute the prices for which pure-discount bonds, with face values of $1,000, that mature in 6 and 12 months would sell. [Hint: If the pure discount bonds were traded, the 6 and 12 month Treasuries' prices must be the same as the value of a portfolio of pure discount bonds that has the same stream of payments as the Treasury securities]. Consider three US Treasury securities that mature in 6, 12 and 18 months. Each of them has a face value of $1,000. Coupon payments are made semi-annually on these bonds, and the most recent coupon payment was made yesterday. The coupon rates (in annual terms) and current prices of these bonds are given in the table below. Maturity Coupon Rate Current Price 6 months 3.75% $979.57 12 months 3.5% $922.90 18 months 3.0% $908.36 Using the 6 and 12 month maturities, compute the prices for which pure-discount bonds, with face values of $1,000, that mature in 6 and 12 months would sell. [Hint: If the pure discount bonds were traded, the 6 and 12 month Treasuries' prices must be the same as the value of a portfolio of pure discount bonds that has the same stream of payments as the Treasury securities]