The tax-free country of Tadamo uses the currency "Tad". Its capital market is perfect, and the current annual risk-free market interest rate is 3% Assumptions: - Today is December 31, 2020, at 4:00 PM. - The market's required rate of return for a risk-free bond s the risk-free market interest rate. - All bonds have a face value of 600 Tad each at the time of issuance - Bond payments are due annually in arrears on December 31 at 12:00 PM. - By "price" (measured in tad) per unit, we mean the term of "price" 1 There are three possible macroeconomic states for the future economy (AA, BB and CC). They are each characterized by its annual risk-free market interest rate. It is agreed that state BB with an annual risk-free market interest rate of 3% will prevail. The capital market includes four risk-free bonds described in Table 1, all of which were issued today at 1:00 PM. 1. Please provide the annual payments over the term for each of the four bonds. 2. Please provide the current bond prices for each of the 9 combinations of bond + state (1AA,1BB,1CC and 3AA,3BB,3CC ) as per table. 1 The term * price is defined as the absolute market price for the total face value