1.Consider the market rates for the maturities 12, and 3 years respectively in the table below. What is the price of a 3-year bond with annual payments, coupon equal to 8.25 % and face value equal to $ 10,000 . Answer with two decimal accuracy . Example : 74929.05 t R(0, t) 1.35 3.95 5.05 Blank Excel Worksheet Your Answer :

2.Consider the following US treasury rate table expressed in percentage Maturity Yield Last Last Yesterday Week Month R(0, t) t 1.55 1.85 2.35 2.65 1.90 6 Month2.20 2.70 2.75 2.10 2.40 1 Year 2.90 3.85 3.05 4.15 2 Year 4.65 3.90 5.702.20 3 Year 4.70 4.10 4.80 4.40 5 Year 4.90 4.50 4.80 5.00 5.30 10 Year 5.50 30 Year The forward rate F\{2, 1\} is the rate that applies to borrowing lending starting 2 years from today for an additional year . F 2.1 ) today is equal to Answer percentage with two digits decimal accuracy Example 10.34 Your Answer :