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You have estimated spot rates as follows: r1 = 5.40%, r2 = 5.80%, r3 = 6.10%, r4 = 6.30%, r5 = 6.40%. a. What are

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You have estimated spot rates as follows: r1 = 5.40%, r2 = 5.80%, r3 = 6.10%, r4 = 6.30%, r5 = 6.40%. a. What are the discount factors for each date (that is, the present value of $1 paid in year ? (Do not round intermediate calculations. Round your answers to 3 decimal places.) Year Discount Factors 1 2 3 4 5 b. Calculate the PV of the following $1,000 bonds assuming an annual coupon and maturity of: (i) 5.4%, two-year bond; (ii) 5.4%, five- year bond; and (ii) 10.4%, five-year bond. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Present Value b-i b-ii 5.40%, two-year bond 5.40%, five-year bond 10.40%, five-year bond b

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