Question 2 Below are cash flows from bonds of 1, 2, 3, and 4 semi-annual periods of maturity and $1,000 par Coupon Rates 2.5% coupon Period (6-m) Bond 1 Bond 2 Bond 3 Bond 4 0 $ -995.02 $ -980.30 $ $ -992.72 $ 970.78 1 $ 1,000.00 $ $ 12.50 $ 12.50 2 $ 1,000.00 $ 12.50 $ 12.50 3 $ 1,012.50 $ 12.50 4 $ 1,012.50 yield-to-maturity 1.00% 2.00% 3.00% 4.00% 1) What is the yield-to-maturity on bond 3 (place in the right cell). 2) Calculate the price for bond 4 that results in a 4% yield-to-maturity 3) Complete the follwing table showing YTM, spot rates and forward rates. Use the remaiander of the worksheet to make calcualtions for the table below. Forward Bond 1 YTM 1.00% Spot 1.00% 2.00% 2 3 2.00% 3.00% 4.00% 4