You observe the following three spot rates:

0r1=3%0r2=5%0r3=7%

These sport rates suggest that the economy is headed for recession, steady growth, or boom?

A bond has a coupon rate of 8%, matures in three years, and has a face value of $1,000.

The bond cash flow at t=1 is

The present value of the bond cash flow at t=1 (rounded to the nearest penny) is

The bond cash flow at t=2 is

The present value of the bond cash flow at t=2 (rounded to the nearest penny) is

The bond cash flow at t=3 is

The present value of the bond cash flow at t=3 (rounded to the nearest penny) is

The bond price rounded to the nearest penny is

The bond yield to maturity (YTM,) expressed as a percent is