You have estimated spot rates as follows: r1 = 6.50%, r2 = 6.90%, r3 = 7.20%, r4 = 7.40%, r5 = 7.50%.

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.)

b. Calculate the PV of the following $1,000 bonds assuming an annual coupon and maturity of : (i) 6.5%, two-year bond; (ii) 6.5%, five-year bond; and (iii) 11.5%, five-year bond. (Do not round intermediate calculations. Round your answers to 2 decimal places.)