Question: Problem 1 {3' points]: Consider the following information three bonds and assume they are priced correctly: Time to maturiw _ Bond #1 0.5 5% 1D.49

Problem 1 {3' points]: Consider the
Problem 1 {3' points]: Consider the following information three bonds and assume they are priced correctly: Time to maturiw _ Bond #1 0.5 5% 1D.49 Bond #2 1 3% 102.55 Bond #3 101-53 a] (3 points) Find discount factor d(1.5}. Keep at least 4 decimal digits while performing your calculations b] [2 points] Find forward rate r[1.5]. Keep at least 4 decimal digits while performing your calculations c) [2 points) Find the price of a 10% coupon bond maturing at t=1.5. Round your answer to the nearest cent Problem 2 {5 points]: Find a 3-year spot rate ifa 5% coupon bond maturing at T=3 costs 5101 and 3% bond maturing at T=3 costs 15?. Keep at least 4 decimal digits while performing your calculations

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