You have estimated spot rates as follows: r 1 = 6.80%, r 2 = 7.20%, r 3 = 7.50%, r 4 = 7.70%, r 5 = 7.80%. a. What are the discount factors for each date (that is, the present value of $1 paid in year...

You have estimated spot rates as follows:

r
₁= 6.80%,r
₂= 7.20%,r
₃= 7.50%,r
₄= 7.70%,r
₅= 7.80%.

a. What are the discount factors for each date (that is, the present value of $1 paid in yeart)?(Do not round intermediate calculations. Round your answers to 3 decimal places.)

b. Calculate the PV of the following $1,000 bonds assuming an annual coupon and maturity of : (i) 6.8%, two-year bond; (ii) 6.8%, five-year bond; and (iii) 11.8%, five-year bond.(Do not round intermediate calculations.Round your answers to 2 decimal places.)