Given the following yield information on municipal bonds issued by the state of North Dakota:

1-year note yield = 2.35%

2-year note yield = 2.75%

3-year note yield = 3.29%

4-year note yield = 3.95%

5-year note yield = 4.33%

Given constant premiums of 0, .16%, .21%, .24%, .26%, and .265%.

a) Calculate the expected expectations yields for a (3,2) path.

b) Calculate the expected market yields for a (1,4) path.

c) Determine the expected preferred habitat yield for a 3-year note purchased at the beginning of year 2.

d) Determine the expected expectations yield on a 5-year note purchased today.

QUESTION 1 Given the following yield information on municipal bonds issued by the state of North Dakota: 1 -year note yield =2.35% 2 -year note yield =2.75% 3 -year note yield =3.29% 4-year note yield =3.95% 5 -year note yield =4.33% Given constant premiums of 0,.16%,.21%,.24%,.26%, and .265%. a) Calculate the expected expectations yields for a (3,2) path. b) Calculate the expected market yields for a (1,4) path. c) Determine the expected preferred habitat yield for a 3-year note purchased at the beginning of year 2 . d) Determine the expected expectations yield on a 5 -year note purchased today. For the toolbar, press ALT+F10(PC) or ALT+FN+F10 (Mac)