Task 14 The folowing table survarices prices of various defaul-freezert-coupon bonds (S100 fave valuel: 2 S91.69 3 587.18 4 SB2.89 5 $77.37 Maturity (years) 1 Price (per $100 face value) 596.17 aCompute the yield to maturity for each bord. b. Plot the zero-coupon yield curve (for the first five years. c. Is the yield curve upward sloping, dewraard slopirg, or flat? Note: Assuma Annual compounding a Compute the yield to maturity for each bord. Answer: The yield on the 1-year bond is...% Task 15 Suppose a seven-year. $1,000 bond with a 9.44% coupon rate and semiannual coupons is trading with a yield to maturity of 7,46%. a. Is this bond currently trading at a discount at par, or at a premuim? Explain. b. If the yield to maturity of the bond rises to 7.54% (APR with semiannual compounding), at what price will the bond trade? a. Is this bond currently trading at a discount, at par, or at a premuim? Explain. Answer: The bond is currently trading (select A, B, C or D... O A. ... at a premium because the coupon rate is greater than the yield to maturity OB. ..at a premium because the yield to maturity is greater than the coupon rate. OC ... at par because the coupon rate is equal to the yield to maturity OD ... at a discount because the coupon rate is greater than the yield to maturity