An analyst needs to assign a value to an illiquid

four$-$year, $4\mathrm{.}5\%$ annual coupon corporate bond.

The analyst identifies two corporate bonds that

have similar credit quality: One is a two$-$year,

$5\mathrm{.}5\%$ annual coupon note priced at $107\mathrm{.}500$ per

$100$ of par value, and the other is a five$-$year, $4\mathrm{.}5\%$

annual coupon payment bond priced at $104\mathrm{.}750$ per

$100$ of par value. Using matrix pricing, calculate

the yield and estimated price of the illiquid bond

per $100$ of par value. Show all your work.