Question: Question 8 (10 points) Consider the data on two Treasury bonds: Maturity Coupon Price 1 year 3% $102 2 years 2.50% $101.50 Assuming annual coupon

Question 8 (10 points) Consider the data on two Treasury bonds: Maturity Coupon Price 1 year 3% $102 2 years 2.50% $101.50 Assuming annual coupon payments, what are the term structure rates for 1 year and 2 years? 0.98% and 2% 3% and 2.5% O 1.5% and 2% 0.98% and 1.74%

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