Using the file below to complete the bond table and answer the following questions.

The excel version is available as an attachment to this assignment for additional analysis.

Years Face Coupon Market

Security Rating Maturity Value Rate Price

Treasury $1$ $ $1,0000\mathrm{.}00\%$ $ $966\mathrm{.}66$

Treasury $3$ $ $1,0002\mathrm{.}00\%$ $ $939\mathrm{.}06$

Treasury $5$ $ $1,0004\mathrm{.}40\%$ $ $932\mathrm{.}42$

Treasury $10$ $ $1,0007\mathrm{.}20\%$ $ $1,007\mathrm{.}12$

Treasury $20$ $ $1,0006\mathrm{.}60\%$ $ $908\mathrm{.}25$

Corp A A $5$ $ $1,0008\mathrm{.}10\%$ $ $1,000\mathrm{.}00$

Corp B BB $10$ $ $1,0007\mathrm{.}90\%$ $ $859\mathrm{.}88$

Corp C AA $20$ $ $1,0008\mathrm{.}20\%$ $ $972\mathrm{.}22$

What is the BB $($double$-$B rated corporate bond$)$ Default Risk Premium $($rdp$)?$

What price would you pay for a $10-$year, AA bond with a Face Value of $$1,000$ and a coupon rate of $7\mathrm{.}10\%?$

What price would you pay for a $5-$year, BB bond with a Face Value of $$1,000$ and a coupon rate of $9\mathrm{.}75\%?$

Why is the Maturity Risk Premium for $20$ years greater than the Maturity Risk Premium for $5$ years?

What would most likely happen if the A bond were to be downgraded to a rating of BB$?$

What price would you pay for a $3-$year, BB bond with a Face Value of $$1000$ and semi$-$annual coupon rate of $8\%$

$5$ years ago, you purchased a corporate bond for $$942.$ At the time, the bond had a YTM of

$9\%$ and $9$ years left to maturity. Today, the YTM on your bond is $6\%.$

What is the current market price of your bond? Assume fixed annual coupon payments and

a par value of $$1,000.($ Round your answer to the nearest whole dollar$).$