You have estimated spot rates as follows:

r₁= 6.40%, r₂= 6.80%, r₃= 7.10%, r₄= 7.30%, r₅= 7.40%.

a. What are the discount factors for each date (that is, the present value of $1 paid in year t)? (Do not round intermediate calculations. Round your answers to 3 decimal places.)

year	Discount Factor
1
2
3
4
5

b. Calculate the PV of the following $1,000 bonds assuming an annual coupon and maturity of : (i) 6.4%, two-year bond; (ii) 6.4%, five-year bond; and (iii) 11.4%, five-year bond. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

i	6.4% twoyear bond
Ii	6.4%fiveyear bond
iii	11.4%five year bond