Bond Yields: Coupon Rate, Current Yield, Yield to Maturity, and Realized Yield Report all bond yields in a percent format to three decimal places (e.g., 2.345%). Bill purchases a 10-year T-note with 5 years to maturity, a 5.000% coupon rate, a market price of 97.000 and yield- to-maturity of 5.700%. Bill will hold the T-note for 3 years and then sell it in the secondary market to George who will hold the T-note to maturity. Bill's interest rates assumptions: Bill is a bank teller and is 100% certain that market returns (YTMS) for Treasuries three years from now will be: 5.400% on T-notes with 1-year to maturity 5.600% on T-notes with 2-years to maturity 5.700% on T-notes with 3-years to maturity 5.800% on T-notes with 4-years to maturity 5.900% on T-notes with 5-years to maturity 6.000% on T-notes with 10-years to maturity Scenario 1: Bill, the bank teller is correct and his interest rate assumptions are accurate. Timelines may be completed neatly in pencil without any presentation deduction Complete the original 10-year T-note's time line with all the correct information: NI/Y, PV, PMT, FV (assume purchase price in the primary market is par value): 0 i= 1 2 ------------------------ ---- 2. Complete George's time line as best you can (not graded): 3. Complete Bill's time line as best you can not graded): Bill's realized yield will be 5.756%. (Before proceeding make sure you can calculate this checkpoint.) What is George's yield-to-maturity? Bond Yields: Coupon Rate, Current Yield, Yield to Maturity, and Realized Yield Report all bond yields in a percent format to three decimal places (e.g., 2.345%). Bill purchases a 10-year T-note with 5 years to maturity, a 5.000% coupon rate, a market price of 97.000 and yield- to-maturity of 5.700%. Bill will hold the T-note for 3 years and then sell it in the secondary market to George who will hold the T-note to maturity. Bill's interest rates assumptions: Bill is a bank teller and is 100% certain that market returns (YTMS) for Treasuries three years from now will be: 5.400% on T-notes with 1-year to maturity 5.600% on T-notes with 2-years to maturity 5.700% on T-notes with 3-years to maturity 5.800% on T-notes with 4-years to maturity 5.900% on T-notes with 5-years to maturity 6.000% on T-notes with 10-years to maturity Scenario 1: Bill, the bank teller is correct and his interest rate assumptions are accurate. Timelines may be completed neatly in pencil without any presentation deduction Complete the original 10-year T-note's time line with all the correct information: NI/Y, PV, PMT, FV (assume purchase price in the primary market is par value): 0 i= 1 2 ------------------------ ---- 2. Complete George's time line as best you can (not graded): 3. Complete Bill's time line as best you can not graded): Bill's realized yield will be 5.756%. (Before proceeding make sure you can calculate this checkpoint.) What is George's yield-to-maturity