) Swiss Guardians Ltd, an investment bank, purchased an Australian Federal Treasury bond at a government bond auction today. This bond has exactly 7 years to maturity and will pay semi-annual coupons of (equivalent) 1% per annum. All bonds in this issue (i.e. Treasury bonds with a coupon rate of 1% per annum with 7 years to maturity) are currently trading in the bond market at their face value of $1,000,000. Rather than just buy-and-hold this bond, the investment bank decides to strip the coupon payments off I this newly issued / year to maturity (semi-annual coupon) bond to create a zero-coupon bond and a separate income only annuity; rights to payments from the zero-coupon bond and the annuity stream will be sold to investors. If the zero-coupon bond created can be sold at a yield of 0.8% per anmum (assume a semi-annual discount rate), what is its principle payment worth today? What is the income stream (of semi-annual coupons) sold for if the yield accepted by the purchaser is an equivalent of 0.8% per annum? What is the dollar (and percent) gain or loss made by the investment bank based on these transactions? Briefly comment on this titade from the investment bank's perspective