You have estimated spot rates as follows: r1= 6.40%, r2= 6.80%, r3= 7.10%, r4= 7.30%, r5= 7.40%. a. What are the discount factors...

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Finance

You have estimatedspot rates as follows:
r₁= 6.40%,r₂= 6.80%,r₃= 7.10%,r₄= 7.30%,r₅= 7.40%.
a.What are the discount factors for each date (that is, the presentvalue of $1 paid in year t)? (Do not roundintermediate calculations. Round your answers to 3 decimalplaces.)
year Discount Factor
1
2
3
4
5
b. Calculate the PV of the following $1,000bonds assuming an annual coupon and maturity of : (i) 6.4%,two-year bond; (ii) 6.4%, five-year bond; and (iii) 11.4%,five-year bond. (Do not round intermediatecalculations. Round your answers to 2 decimalplaces.)
i 6.4% twoyear bond

Ii 6.4%fiveyear bond
iii 11.4%five year bond

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You have estimatedspot rates as follows:r1= 6.40%,r2= 6.80%,r3= 7.10%,r4= 7.30%,r5= 7.40%.a.What are the discount factors for each date (that is, the presentvalue of $1 paid in year t)? (Do not roundintermediate calculations. Round your answers to 3 decimalplaces.)yearDiscount Factor12345b. Calculate the PV of the following $1,000bonds assuming an annual coupon and maturity of : (i) 6.4%,two-year bond; (ii) 6.4%, five-year bond; and (iii) 11.4%,five-year bond. (Do not round intermediatecalculations. Round your answers to 2 decimalplaces.)i6.4% twoyear bond Ii6.4%fiveyear bondiii11.4%five year bond