Part 2 Bond Valuations 1-Consider a U.S. Treasury Bill with 270 days to maturity. If the annual yield is 3.8 percent, what is the price? =(1+i)n$100 Answer: 2-Assuming that the current interest rate is 3 pereent, compute the present value of a five-year, 5 percent coupon bond with a face value of $1,000. What happens when the interest rate goes to 4 percent? What happens when the interest rate goes to 2 percent? PCB=[(1+i)1Couponpayment+(1+i)2Couponpayment++(1+i)nCouponpayment]+(1+i)nFacevalue