Problem 3 Table below presents information on three US Treasury bonds: Maturity Coupon Rate 6 months 12 months 18 months | 1% 2% | 1.5% Price (per $100 of Face value) 99.75 100.5 98.5 Use this information to answer the following questions: a. Find the semi-annual coupon payment (in dollars) for each of these three bonds. b. Construct three timelines (one for each bond), showing cash flows of each bond. Combine these time lines into a table. In this table, each row should show cash flows of one bond (the first row should show cash flows of the first bond, second row -- of the second bond, etc.) and each column shows cash flows received on the same date. c. Find the first three rates of the term structure of interest rates, using the bootstrapping method. d. Find yields to maturity on these bonds. e. Graph the first three rates of the term structure (annualized). f. Is term structure increasing or decreasing? Please provide the explanation for the main reason for the term structure being increasing or decreasing. g. Suppose that US Treasury plans to issue 5% coupon bonds, which pay semi- annual coupons. The bonds will mature in 18 months. What is the price of these bonds