You have fives bonds as shown in the below. Three are zero coupon bonds and the other two are coupon bonds. By applying bootstrapping you would like to compute each spot rate for each bond and figure out the spot rate curve. Bond Principal Maturity Coupon Bond Price Zero Rates 1 100 0.25 0 97.5 ? 23456789 100 0.50 0 96.9 ? 100 1.00 0 95.0 ? 100 1.50 8 94.7 ? 100 2.00 9 100.6 ? 100 2.50 9.5 100.9 ? 100 3.00 10.2 101.3 ? 100 3.50 11.8 101.9 100 4.00 12.4 102.3 10 100 4.50 13.6 102.6 11 100 5.00 15 103.5 2222 ? ? ? ? a. Compute the spot rate using the bootstrapping method. b. Draw the yield curve of spot rates (i.e. term structure of spot rates). c. Is that an upward slope or downward slope? d. What is the spread between a 5 year bond rate and a 6month yield? e. Based on the answer of d, do you think the slope is steep? If yes, why? If not, why not?