please do 7

7. The yield to maturity on L-year zero coupon bonds is currently 7.k., the yield to maturity on 2-year zero coupon bonds is 8%. The Treasury plans to issue 2-year maturity fixed and coupon bonds with semiannual coupon payments, the coupon rate is 9% and face value en of the bond is $100. Follow semiannual compounding a. What price will the bond sell? b. What will the yield to maturity on the bond bel ad C. If the expectations theory is correct, what will be the market's expectation of the price the bond will sell one year from today? d. If you believe the liquidity preference theory to be correct, recalculate the answer to e) based on a liquidity premium of 1% Price ca polo TD