Editing Voic 3. (See Thomas chs. 5-6, lecture 3a) Easier with a calculator (a cheap one will do). Round dollar answers to the nearest cent (yen answers to the nearest yen), round percentage answers to two decimal places (e.g. 6.33%). Do not round in the middle of a computation. Notes: all "T-bills" have zero coupons. All interest rates are annualized. (6 pts. per blank) (a) You deposit $5000 into a bank account earning 1.4% per year, compounded annually, and leave it there untouched. After three years your deposit, with accumulated interest, will be worth $ (b) The market yield-to-maturity for a 1-year T-bill having a current market price of $9969 and a face (final) value of $10,000 is % (C) A1,000,000 1-year Japanese T-bill with a yield of 0.09% sells for (d) (Thomas p. 105; assume B=1) A $10,000 zero-coupon bond maturing in four years has an annualized yield-to-maturity of 1.0%. The expected inflation rate over the next four years is 1.8% per year. The expected annualized real interest rate on the bond is approximately = %. (e) With a market yield-to-maturity of 1%, what is the price (present value) of a $10,000 3-year bond with 2% annual coupons? (Assume that the first coupon is due one year from today.) $