The following prices of 10% annual coupon bonds with $100 face values from a risk-free institution have been observed in the market: Maturity Price in years 1 100 2 99 98 3 4 97 5 96 95 6 (a) Calculate each bond's yield to maturity 2 (b) Using bootstrapping, calculate their zero rates from the market prices and cash flows above (c) Using the answers in both (a) and (b) above, plot the yield curve and the zero curve. Discuss any differences. (d) Using the zero rates in (b), compute the discount factors (e) Using the discount factors in (d), calculate the arbitrage-free price of a 3-year, 4% annual coupon bond with a par value of $100 (f) Using the zero rates in (b) or the discount factors in (d), calculate the coupon rate that the risk-free institution would need to offer on a three-year annual coupon bond to equate the issuance price to a par value of $1,000. Here, given a set of zero rates you'll need to guess a coupon rate, c, that sets the price of the bond equal to par. (Also note that you alternatively can directly solve for c from the pricing equation.)