For the following questions, assume that current prices on Zero coupon treasury bonds with the indicated times to maturity (in years) are: T 1 2 3 5 P 99.0 97 94.5 90. Question 3. (i) Suppose that a 3% bond pays interest annually and has three years to maturity. Display the cash flows for this bond and determine the present value of these flows under the above yield curve. (ii) Suppose that a similar 3% bond pays interest semi-annually and has three years to maturity. Show the cash flows from this bond and determine the present value of these flows with this yield curve. (Describe explicitly how you determine the discount rates here) Is this value less than, equal to, or greater than the answer in part (i)? What causes any differences in this present value? For the following questions, assume that current prices on Zero coupon treasury bonds with the indicated times to maturity (in years) are: T 1 2 3 5 P 99.0 97 94.5 90. Question 3. (i) Suppose that a 3% bond pays interest annually and has three years to maturity. Display the cash flows for this bond and determine the present value of these flows under the above yield curve. (ii) Suppose that a similar 3% bond pays interest semi-annually and has three years to maturity. Show the cash flows from this bond and determine the present value of these flows with this yield curve. (Describe explicitly how you determine the discount rates here) Is this value less than, equal to, or greater than the answer in part (i)? What causes any differences in this present value