Q2. Consider a bond with a 4% annual coupon and a face value of $1,000.

Q2. Consider a bond with a 4% annual coupon and a face value of $1,000. 1 W Years to Maturity Yield to Maturity Current Price 5% 2 4% 3 2% y 3 1% X Z 1. (7pts.) Check that w, x, y and z are greater than, equal to or smaller than $1,000. 2. (7pts.) Also, order w, x, y and z from the highest to the lowest. 3. (6pts.) Consider the bond "y" for the 3-year maturity bond. Provide an "EQUATION" to compute Pt+1, assuming that the market interest rate in the next year (period 1) is 10%