You've recently been hired as an analyst by a small hedge fund, Foster Capital (FC), to help them analyze future investment opportunities. Like any hedge fund, FC has raised money from people in the capital market and invests their money to find positive NPV opportunities in the capital markets by finding mispriced securities. While FC invests in many different types of assets, you will be working with the fixed income group. Part 1: Your first major assignment is to analyze two zero-coupon U.S. Treasury securities, also called STRIPS: a 1-year security and a 10-year one, both with $1,000 face values. The real risk-free rate of interest is constant at 2% across all maturities. Inflation expectations from the Cleveland Federal Reserve and the current nominal interest rates are given in Exhibit 1 (first tab in the Excel Exhibits file). The current market price of the 1-year security is $962.10 and the current market price of the 10-year one is $604.53. Exhibit 1 contains information on both securities. Please a