Just need question 2 answer

1. The Term Structure of Interest Rates The term structure of interest rates refers to relationship between the annualized interest rates on zero-coupon bonds with different terms to maturity. Suppose the prices orn discount bonds paying off $1 for sure at maturity are selling for the prices shown in the table below:v Term to Maturity Bond Pricep T in Years PT in dollars 0. 961* 0. 91 0. 858 0. 784P 0. 70 0. 623 40 60 10a Using these data, compute the annualized interest rate on each of the ten discount bonds. 0. 3864P 2. Bond Pricing Recall that any coupon bonds can always be regarded a portfolio of discount bonds. Using this insight, and the same data from question 1, above, find the price of a ten year coupon bond that makes an annual interest (coupon) payment of S100 at the end of each year, every year, for the next ten years before making a final payment of $1000 (given by the bond's par or face value) at maturity ten years from now.*