$($d$)[1$ points$]$ As you know, treasury bonds are usually considered $$safe$$ and also the YTM of a

treasury bond is sometimes referred to as the risk$-$free rate. However, Carbon Valley Bank does

have a loss on paper according to the result in $($c$).$ Is there any contradiction here? Please explain.

$($e$)[5$ points$]$ Starting from today, assume the YTM of $5\%$ won$$t change for the future $18$ years

and the bank will reinvest the coupons at the $5\%($semiannual APR$)$ immediately after receiving

each of the $36$ coupon payments, what is the future value of all the coupons and the face value in

$18$ years, for the entire bond position?