4. Use the August 15, 2020 U.S. Treasury quotes shown below to calculate the discount factor and spot rate for each maturity given in the table. Solution: The discount factors are built successively as shown on slide 17 of lecture 9. The spot rates follow from the discount factors as shown in slide 18 of lecture 9. Maturity Coupon Price Discount Factor Spot Rate 2/15/21 3.625 101.71875 0.999079 0.1843 8/15/21 2.750 102.59375 0.998471 0.1531 2/15/22 2.500 103.46875 0.997252 0.1835 8/15/22 1.625 102.90625 0.996632 0.1688 2/15/23 1.375 103 0.995713 0.1719 8/15/23 2.500 106.90625 0.994294 0.1908 2/15/24 2.750 108.84375 0.992545 0.2139 8/15/24 2.375 108.46875 0.990114 0.2485 2/15/25 2.000 107.6875 0.987360 0.2829 8/15/25 2.000 108.375 0.984391 0.3149 Coupon and spot rate in %/year, price as percent of par.2. Calculate the 4-year swap rate [par coupon} DD August 15, 21321] given your results for question 4 in problem set 5