Question 2: There are five bonds traded in the market with maturities T 1,2,3,5, 10. The bonds also pay semi-annual coupons of size 2% of their face value. At time 0 the bond prices are Maturity (years) | 1 | 2 3 5 10 Bond Price 1.0298 1.0 IM 1.0()01 ().9570 0.8861 Table 1: Coupon bearing bond prices Estimate a yield curve for all times of the form m/2 for m E 1,.... 20} (use the bootstrapping method illustrated in lecture). For each bond also compute the yield-to-maturity, the Macauly duration, and the duration Question 2: There are five bonds traded in the market with maturities T 1,2,3,5, 10. The bonds also pay semi-annual coupons of size 2% of their face value. At time 0 the bond prices are Maturity (years) | 1 | 2 3 5 10 Bond Price 1.0298 1.0 IM 1.0()01 ().9570 0.8861 Table 1: Coupon bearing bond prices Estimate a yield curve for all times of the form m/2 for m E 1,.... 20} (use the bootstrapping method illustrated in lecture). For each bond also compute the yield-to-maturity, the Macauly duration, and the duration