Instructions:

1. Your answers should be precise. Do not give information not directly relevant for answering the questions. Show all your work in numerical problems to receive full credits. The assignment will be graded on a scale of 0-5. Clarity and grammatical correctness will carry some weights in the evaluation of this assignment. Please refer to the scoring rubric. You must submit your answers to Q.1 2. You are not required to submit your answers to Q.3 - 7. 1. Consider a bond with a 5% annual coupon and a face value of $1,000. Complete the following table. What relationships do you observe between years to maturity, yield to maturity, and the current price? Show all your work.

Years To Maturity	Yield To Maturity	Current Price
2	2%
2	4%
3	4%
3	6%
4	2
4	6

2. The Federal Reserve System resembles the U. S. Constitution in that it was designed with many checks and balances. Do you agree? If so, discuss at least three distinctive features of the structure and organization of the Fed that provide with these checks and balances. If not, explain why. (3 points)