In the space below, please draw a standard normal Treasury bond yield curve from years 0-30 using the data provided and briefly explain the term structure of interest rates.

Treasury	Yield (%)
1-Month Bill	0.023
3-Month Bill	0.053
6-Month Bill	0.124
1-Year Note	0.229
2-Year Note	0.672
3-Year Note	1.086
5-Year Note	1.654
7-Year Note	1.974
10-Year Note	2.171
30-Year Bond	2.750

Describe some instances where it would be a good idea for you to purchase a zero coupon bond instead of a coupon bond?

Explain why someone with a large portfolio of fixed income investments would fear inflation?

What is the fair price for a bond with a 6% annual coupon and 8 years left until maturity that yields 7%?

How much would you pay for a semi-annual 5% coupon bond with 25 years left until maturity that yields 3.50%?

What is the yield to maturity of an annual 7% bond that has 8 years left until maturity and costs $1065?

What would your yield to maturity be on a semi-annual 3.50% coupon bond that has 10 years left until maturity and costs $986.65?

If you purchased a semi-annual 8% coupon bond for $1185.90, that yields 6%, how many years are left before this bond matures?

PLEASE ANSWER ALL QUESTIONS