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Question 3: (10 marks) (i.) Calculate the price of a 10% US Treasury Bond 2036, a 3% US Treasury Bond 2027. (ii.) Calculate the yield

Question 3: (10 marks) (i.) Calculate the price of a 10% US Treasury Bond 2036, a 3% US Treasury Bond 2027. (ii.) Calculate the yield on a 3-mth US Treasury Bill, face-value$ 100,000, with 67 days to maturity, currently trading at a market price of $91,000. Assume a 360 day-count applies. (iii.) Which two of these three fixed-income securities referred to above would you recommend for a risk-averse investors portfolio at present? Explain giving your reasons.

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