1. On paper. The relationship between a bond's yield to maturity and coupon interest rate can be used to predict its pricing level. For each of the bonds listed . state whether the price of the bond will be at a premium to par. at par. or at a discount to par. Coupon Interest re - to maturlty Price In-Icate r'par". "discount". or "premium" 2. On paper. Lahey Industries has outstanding a $1.0m] par-value bond with an 8% coupon interest rate . The bond has 12 years remaining to its maturity date . If interest is paid annually .nd the value of the bond when the required return is {l} was: {2} 8%: {3} 10% and indicate for each case whether the bond is selling at a discount .at a premium. or at its par value. 3. In Excel .Afim'r wishing to evaluate interest rate behavior has gathered data on the nominal rate of interest and on inflationary expectations for five U.S. Treasury securities. each having a different maturity and each measured at a different point in time during the year just ended .These data are summarized in the following table. Treasur efinterest expectation 3" security Jan. ? Mar. 12 Aug . 15 Dec . 3:] A B C May 3U D E o no: In an Excel spreadsheet: a. Using these data .nd the real interest rate at each point in time. b. Describe the behavior of the real rate of interest over the year. What forces might be responsible for such behavior? c. Plot [using a graph lithe yield curve associated with these data . assuming that the nominal rates were measured at the same point in time. d. what general expectations are embodied in this yield curve