Judy Johnson is choosing between investing in Two securities that mature in $5$ years and have a par value of $1000.$ One is a Treasury Note paying an annual coupon of $5\mathrm{.}06\%$ The other is a TIPS that pays $3\%$ annually

b$.$ How much interest will Judy receive over the five years from the Treasury note? From the TIPS?

c$.$ When each bond matures, what par value will Judy receive from the Treasury note? From the TIPS?

d$.$ After five years, what is Judy's total income $($interest $+$ par$)$ from each bond? Should she use this total as a way of deciding which bond to purchase?

$3.$ Using the regular Treasury note of Problem $2$:

a$.$ What is its price if investors' required rate of return is $6\mathrm{.}0$ percent on similar bonds? Treasury notes pay interest semiannually.