Question 3 8 Marks Excerpt taken and modified from Government of Pakistan Investment bond's Auction result: Auction for 3, 5, 10- and 20-year Pakistan Investment Bonds was held on March 20, 2019 with settlement date on March 21, 2019. The coupon rates for 3, 5, 10- and 20-year bonds are 7.25%, 8.00%, 8.75%, and 10.75% respectively. The accepted bid summary and result is as under: (Amount in PKR million) Realized Accrued Total Realized Cut-off Yleld Wolghted Average Tenor Face Value Cut-off Price Amount Interest Amount (YTM) Yleld p.a. 03 Years 15,488.602 05 Years 17.160.000 22.080.000 56.821.500 18,811.719 12.2300% 12.6405% 13.1500% 233.698 15,722.300 90.2012 331.810 19,143.529 84.9000l 933.945 44,992.075 76.7277 NO BID RECEIVED 1,499.453 79,857.904 12.1981% 12.5392% 12.9681% 10 Years 44,058.131 20 Years Total 96,061.500 78,358.452 a. Using weighted average yield % Rua calculate the following rates: a. The 2-year rate 3 years from now b. The 5-year rate 5 years from now b. Given the following information what do you think will be the shape of the Pakistan investment bond yield curve. Explain support your answer with the help of the latest SBP Monetary policy report. Question 3 8 Marks Excerpt taken and modified from Government of Pakistan Investment bond's Auction result: Auction for 3, 5, 10- and 20-year Pakistan Investment Bonds was held on March 20, 2019 with settlement date on March 21, 2019. The coupon rates for 3, 5, 10- and 20-year bonds are 7.25%, 8.00%, 8.75%, and 10.75% respectively. The accepted bid summary and result is as under: (Amount in PKR million) Realized Accrued Total Realized Cut-off Yleld Wolghted Average Tenor Face Value Cut-off Price Amount Interest Amount (YTM) Yleld p.a. 03 Years 15,488.602 05 Years 17.160.000 22.080.000 56.821.500 18,811.719 12.2300% 12.6405% 13.1500% 233.698 15,722.300 90.2012 331.810 19,143.529 84.9000l 933.945 44,992.075 76.7277 NO BID RECEIVED 1,499.453 79,857.904 12.1981% 12.5392% 12.9681% 10 Years 44,058.131 20 Years Total 96,061.500 78,358.452 a. Using weighted average yield % Rua calculate the following rates: a. The 2-year rate 3 years from now b. The 5-year rate 5 years from now b. Given the following information what do you think will be the shape of the Pakistan investment bond yield curve. Explain support your answer with the help of the latest SBP Monetary policy report