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Hi, what are the exact excel functions can we use to compute the yellow cells? Can you give me an example for each? Thanks. Question

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Hi, what are the exact excel functions can we use to compute the yellow cells? Can you give me an example for each? Thanks.

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Question 3 For each ofthe two term structures below, use the given zero rates to ll in the table by calculating for maturities 0.5, 1, 1.5,, 10, a) the zero prices, b) the yields on a 10%coupon bonds Hint: please use the RATE function again, and note that you will need to calculate the bond price from the zero prices as an intermediate step. c) the yields on a 40%coupon bonds, d) the yields on "annuities" that pay $1 every six months until maturity. Upward-Sloping Term Structure (10/30/1992) Yields on 10%- and I .l 40%coupon bonds Annuity Maturity Zero rate Zero price 10% 40% yield 0 2.80% 1.00000 2.80% 2.80% 2.80% 0.5 3.15% 0.98449 100% _ 1 3.50% 1.00003 1.5 3.90% 2 4.30% 6.00% 7 2.5 4.60% 3 4.90% 3.5 5.20% 4 550% 500% 7 Zero coupon 4.5 5.65% Yield _ -1095 coupon 5 5.80% 5.5 5.95% 4.00% 7 -40% coupon 6 6.10% ---.Annulty 6.5 6.20% 7 6.30% 3.00% , 7.5 6.40% 8 6.50% 8.5 6.60% 2.00% ' ' ' ' I 9 6.70% n 1 n c o 1 n

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