7"} Estimate the bond's arbitrage free price using forward rates calculated in question E and comment on comparability of spot rate and forward rate pricing. Show calculations. [4 marks} There is another Google Billiton 15 year semiannual 2% coupon paying bond in the market priced at $1.?9. Using bondspecic spot rates as calculated in l[Question 5 {for I15 year, 1 year, 1.5 year and 2 years}, bootstrap 25year spot rate for the bond. Show calculations. (3 marks) Estimate the original bond's (displayed in Figure 1} Macaulay Duration and Converity {as of 3D Sep 16). Show calculations. [5 marks} Hint: for semiannual coupon paying bonds you will he using the semiannual cash ows, yields and periods as inputs for your calculation of the Macaulay Duration and Converity. You will need to convert the output of your calculations into the annualised (standard) form. To do that you should divide Macaulay Duration and Converity based on the semiannual periods by 2 and 4 respectively to arrive with the final