Question 18 (16 points) Galaxy Co. is an investment bank specialized in securitizing mortgages in to CDOs. The company recently purchased rights to collect following three mortgage payments from banks as follows. Semi-annual payment of $20,000, and a final lump-sum payment of $500,000 at year 10 Semi-annual payment of $15,000, and a final lump-sum payment of $350,000 at year 10. Semi-annual payment of $5,000, and a final lump-sum payment of $150,000 at year 10 Galaxy Co. firm combines the above three cash flows and securitizes it into thousand bonds with identical amount of coupon payments and FV - $1,000. This year's mortgage payments are already made, thus the payments will be made from year 1 to year 10. Round your answer to the nearest whole number. Do not write units ($. %). #1. What is the coupon rate of the bond, expressed in APR? #2. What is the price of this bond if we assume YTM of 2% expressed in APR? #1. What is the coupon rate of the bond, expressed in APR? #2. What is the price of this bond if we assume YTM of 2% expressed in APR ? #3. What is the price of this bond after an year if we assume YTM of 2% expressed in APR? #4. Now, consider the case where mortgage and coupon payments are made quarterly, instead of semi-annually. The quarterly payments are simply half of the original semi-annual payments. What is the price of this bond if we assume YTM of 4% expressed in APR? Blank # 1 Blank # 2 Blank # 3 Blank #4 N