Problem 4: The bonds of a firm have the following prices, depending on the remaining maturities of the bonds (par value is $1,000): Maturity Year Bond A1 Bond B2 Bond C3 Price $947.86 zero coupon bond $961.76 $934.41 The coupon rate is 3.8% and the par value is $1,000, a/ What are the yields for each maturity? b/Draw the yield to maturity c/ Assume that the yield for zero coupon bonds for the Treasury are Maturity Year Yield 1 2.4% 2. 2.5% 3 2.6% In the same graph draw the yield curve for the Treasury. d/ What is the yield spread between the firm and the Treasury at the year 3? el Assume that a credit rating agency downgraded the bond. The prices of bond A and B did not change but the price of the bond C changed by $6. What is the new yield to maturity for the firm at year 3? f/ What is the new spread at year 3? Question: Considering the yield curve in c/, what do you think it may indicate? Explain