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Problem 2 (2pts] Suppose the current spot rates are: Spot rates rate r0.25 1.6% 2.0% 10.75 2.4% ri 2.8% Time to maturity (years) 0.25 0.5

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Problem 2 (2pts] Suppose the current spot rates are: Spot rates rate r0.25 1.6% 2.0% 10.75 2.4% ri 2.8% Time to maturity (years) 0.25 0.5 r0.5 0.75 1 What is the price of the 1-year coupon bond paying a coupon rate of 8% per year quarterly and a face value of $100

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