Question: Suppose the term structure is flat at 5%/year. Calculate the following prices: a. (5 points.) A one-year T-Bill with a face-value of $1,000. b. (5

Suppose the term structure is flat at 5%/year. Calculate the following prices: a. (5 points.) A one-year T-Bill with a face-value of $1,000. b. (5 points.) A 10-year T-Note with a face-value of $1,000 and a coupon rate of 5%/year (paid annually). c. (5 points.) A 20-year T-Bond with a face-value of $1,000 and a coupon rate of 2.5%/year (paid annually)

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