can someone please help me with 1-5

2 Section One: Easy (10 points each) 1 What is the price of UST 2% Syr UST? See Market Data: Syr UST yield is 2.77%. What is the price of UST 3% 10yr UST? See Market Data: 10yr UST yield is 2.97%.. What is the price of Apple (AA Rated) AAPL 3X 10yr? See Market Data: we know it is priced to 10yr UST yield (2.97%) plus credit spread (30 bps) for a total YTM of 3.27%. What is the price of JP Morgan (AA Rated) JPM 2X 3yr? See Market Data: we know it is priced to 3yr UST yield (2.55%) plus credit spread (15 bps) for a total YTM of 2.70%... What is the price of a zero-coupon UST, maturing 10 years from today? See Market Data: it is priced to the 10yr UST yield of 2.97%... 3 4 5 Appendix: Market Data UST Yield Curve 3.000% 2.800 AAA AA Credit Spreads In Bps, for Rating & Maturity 3yr 5yr 7yr 10yr 30yr 5 10 15 20 25 15 20 25 30 35 35 40 45 50 55 65 70 75 80 85 2.600X A BBB 2.400 2 200% Credit Spreads are quoted in bps Remember: a bps is 1/100 of 1% For example, 25 bps = 0.25% 2000 1 2 4 5 6 8 10 30 YTM 2.250 2.410 2.550 2.670 2.770 2.850 2.910 2950 2970 2.970 2.920 Maturity (Years)