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3201 9900 0600 Drami1 551125959000 Europe 4420,73307500 cor For questions 3-11, assume todav is 21Aug2018 and make appropriate estimation using this assumption. 3) Current (annualised)

image text in transcribedimage text in transcribed 3201 9900 0600 Drami1 551125959000 Europe 4420,73307500 cor For questions 3-11, assume todav is 21Aug2018 and make appropriate estimation using this assumption. 3) Current (annualised) US Treasury spot rates are as follows: Assuming that Z-spread is equal to 135 basis points, calculate the bond's arbitrage free price. Show calculations. 4) If the bond is bought today at the arbitrage-free price and sold on 21 Aug 2019 at $99.30, what will be realised rate of return on bond, if no reinvestment of coupons is assumed. Show calculations

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