Use the term structure of interest rates below to solve questions 5 & 6.

Maturity. Spot Interest Rate. Discount Factor

1. 6.0%

2. 6.25%

3. 6.5%

4. 7.0%

5. 7.5%

6. 7.5%

5. Calculate the discount factor for each spot interest rate in the table above. (10 pts)

6. Using the term structure of interest rates in the table above to solve the following problem. A bond pays $100 in years 1, 2, 3 and $1,100 in year 4.

a. What is the price of the bond today? (15 pts)

b. What is the YTM? (10 pts)

show full work please. include excel if needed