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Experts can you please complete the rest of the problem as stated below: (KINDLY SHOW SOLUTION) Questions from 201 through 503 (just the way the

Experts can you please complete the rest of the problem as stated below: (KINDLY SHOW SOLUTION)

Questions from 201 through 503 (just the way the questions were numbered)

GIVEN: Take the bond price data given on 50 bonds. Each bond has a face value of $100 and pays the given coupon semi-annually starting at the next coupon payment dates as given. Follow the steps discussed in class to estimate the term structures of discount factors, spot interest rates, and forward interest rates. Coupon is the rate in per cent per year applied to the face value of a bond to determine the annual coupon in dollars, half of which is paid every six months on coupon payment dates. For example, Coupon of 10% for a bond with a face value of $100 will result in $10 in annual coupon and a payment of $5 on each coupon payment date every half year.

Answer the following questions:

Question: 201: Estimated value of a.

Question 202: Estimated value of b.

Question 203: Estimated value of c.

GIVEN: To plot, take 100 values of the term (x-axis) at intervals of .25 year starting at time 0. Then produce the 100 values (y-axis) of discount factor function, forward rate and spot rate functions for the plots.

Answer the following:

Question 204-303: Discount factor function values for the 100 different terms .25, .50,.,25.00.

Question 304-403: Forward rate function values for the 100 different terms .25, .50,.,25.00.

Question 404-503: Spot rate function values for the 100 different terms .25, .50,.,25.00.

NOTE: The project grade will be based on the accuracy of your answers for each question receiving equal weight. Answers without any verbal description are required to be submitted in a two-column spread-sheet with the first column showing the question number and the second column your answers. It is required that you submit all workings attached to your email submission.

BONDS Data: (SEE BELOW)

Bond QSP NextCoup Coupon YearsMat

1 102.60 0.060 8.00 0.560

2 103.17 0.072 8.60 1.072

3 103.74 0.084 9.20 1.584

4 104.31 0.096 9.80 2.096

5 104.88 0.108 10.40 2.608

6 105.45 0.120 11.00 3.120

7 106.02 0.132 11.60 3.632

8 106.59 0.144 12.20 4.144

9 107.16 0.156 12.80 4.656

10 107.73 0.168 13.40 5.168

11 108.30 0.180 14.00 5.680

12 108.87 0.192 14.60 6.192

13 109.44 0.204 15.20 6.704

14 110.01 0.216 15.80 7.216

15 110.58 0.228 16.40 7.728

16 111.15 0.240 17.00 8.240

17 111.72 0.252 17.60 8.752

18 112.29 0.264 18.20 9.264

19 112.86 0.276 18.80 9.776

20 113.43 0.288 19.40 10.288

21 114.00 0.300 20.00 10.800

22 114.57 0.312 20.60 11.312

23 115.14 0.324 21.20 11.824

24 115.71 0.336 21.80 12.336

25 116.28 0.348 22.40 12.848

26 116.85 0.360 23.00 13.360

27 117.42 0.372 23.60 13.872

28 117.99 0.384 24.20 14.384

29 118.56 0.396 24.80 14.896

30 119.13 0.408 25.40 15.408

31 119.70 0.420 26.00 15.920

32 120.27 0.432 26.60 16.432

33 120.84 0.444 27.20 16.944

34 121.41 0.450 27.80 17.450

35 121.98 0.450 28.40 17.950

36 122.55 0.450 29.00 18.450

37 123.12 0.450 29.60 18.950

38 123.69 0.450 30.20 19.450

39 124.26 0.450 30.80 19.950

40 124.83 0.450 31.40 20.450

41 125.40 0.450 32.00 20.950

42 125.97 0.450 32.60 21.450

43 126.54 0.450 33.20 21.950

44 127.11 0.450 33.80 22.450

45 127.68 0.450 34.40 22.950

46 128.25 0.450 35.00 23.450

47 128.82 0.450 35.60 23.950

48 129.39 0.450 36.20 24.450

49 129.96 0.450 36.80 24.950

50 130.53 0.450 37.40 25.450

Normal Completion

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