[20 marks) The US. Treasury note yield curve data is given as follows: Yearsto Par Coupon Bond Yield Zero Coupon Bond Calculated Maturity to Maturity Yield to Maturity Forward Rates 1 2.00% 2.00% 2.00% 2 3.00% 3.02% 4.06% 3 3.50% 3.53% 4.55% 4 3.90% x y a} Compute the yield to maturity x ofa zerocoupon bond that matures in 4 years. The value ofx is [rounded to 4 decimal places) '| b} If the expectations theory of the yield curve is correct, what is the forward rate y in year 4? The value ofy is [rounded to 4 decimal places) 2 The Treasury plans to issue a 3year maturity coupon bond, paying coupons once per year with a coupon rate of 3.2% per annum. The face value of the bond is $100. c} What will the price of the bond be? The price ofthe bond is (rounded to 2 decimal places) 3 d} What will the yield to maturity of the bond be? The yield to maturity of the bond is (rounded to 4 decimal places) 4 e} If the expectations theory of the yield curve is correct, what is the expected bond price next year? The expected bond price next year is [rounded to 2 decimal places) 5