Bond Pricer: Construct an Excel spread-sheet that uses the input variables below (you may assume realistic values of your choice):

Trade date

Spot rate curve

Coupon rate

Coupon frequency (semi-annual or annual)

Maturity (up to 10 years)

Current price

(a) Compute the Yield to Maturity (YTM). You may use the built-in excel function to calculate the YTM.

(b) Verify the accuracy of the YtM computed in (a) by recalculating the bond price as a sum of discounted cash-flows (i.e. using the arbitrage-free valuation approach).

Spot rate curve provided below:

\begin{tabular}{|r|c|} \hline 8Y6M & 2.178 \\ \hline 8Y9M & 2.25 \\ \hline 9Y & 2.331 \\ \hline 9Y3M & 2.402 \\ \hline 9Y6M & 2.474 \\ \hline 9Y9M & 2.528 \\ \hline 10Y & 2.547 \\ \hline \end{tabular} \begin{tabular}{|r|c|} \hline 8Y6M & 2.178 \\ \hline 8Y9M & 2.25 \\ \hline 9Y & 2.331 \\ \hline 9Y3M & 2.402 \\ \hline 9Y6M & 2.474 \\ \hline 9Y9M & 2.528 \\ \hline 10Y & 2.547 \\ \hline \end{tabular}