Question 1. (a) Find the capital gains yield, the current yield and the total yield to maturity of a 5% bond with 3 years to maturity that is priced at $103. (b) Find the IRR (or uniform yield to maturity) of this bond from the approximate bond pricing formula given earlier in the course, (and T = 0) by using a bisection method. For the following question, assume that the current continuous spot rates are j 1 2 3 5 8 10 Sj 0.01 0.014 0.016 0.02 0.025 0.028 where time is measured in years. Question 1. (a) Find the capital gains yield, the current yield and the total yield to maturity of a 5% bond with 3 years to maturity that is priced at $103. (b) Find the IRR (or uniform yield to maturity) of this bond from the approximate bond pricing formula given earlier in the course, (and T = 0) by using a bisection method. For the following question, assume that the current continuous spot rates are j 1 2 3 5 8 10 Sj 0.01 0.014 0.016 0.02 0.025 0.028 where time is measured in years