Question: 2. (35 points) Suppose you have a plain-vanilla bond. It is a 2-year bond with a face value of $1000 that pays semi-annual coupons of

2. (35 points) Suppose you have a plain-vanilla bond. It is a 2-year bond with a face value of $1000 that pays semi-annual coupons of 2.5% starting next year (t=1). - (5 points) What are the semi-annual coupons? Draw a timeline for this bond. Include all relevant cash flows in each period. - If the semi-annual discount rate is 2.5% : - (2 points) What is the present value of the bond's coupons? (2 points) What is the present value of the bond's face value? (3 points) What is the bond's price

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