I already submitted the template for this project on 4/23. please refer to that template.

Now I am posting 5 questions consecutively. those all 5 question are combined 1 project but i am posting separately so you could answer all of 5 questions at your own choice. These all 5 questions will be solved in same template which I submitted on 4/23.

My UIN's last 2 digits are 28. so please solve all these 5 questions with 28. All the extra info which is not given in these 5 questions can be collected from that same template. I am just explaining few here.

In cell E1 of template you see the market price - $99.75. That's the price for the bond we observe in the market and OAS tells us how much extra spread we are earning when taking into account that the bond is callable. You use volatility to calibrate the one-step forward rates such that they are consistent with the zero coupon bond prices given in cells B-E row 6. Time horizon is 4 years (project is 7 years).

5, 404, 303,0 Compute the OAS, s* 2. (8 points) Below is the price of a 7-year callable bond and that bond is not callable until year 2 (second interest rate step), You will find an OAS, s*, such that callable bond priced off the calibrated forward rate tree equals the market price. Note: this is also another optimization, because you will want to minimize (Pmkt P(s*))2 as a function of s*. Report your result to the nearest 1/10 of a basis point. Term 7 years Coupon UIN Dependent Call Price $101 Non-call period Market Price 2 years $98.50 The coupon is determined as follows: Coupon = 7.2 + ID/500, where ID is the last 2 digits of your UIN. 5, 404, 303,0 Compute the OAS, s* 2. (8 points) Below is the price of a 7-year callable bond and that bond is not callable until year 2 (second interest rate step), You will find an OAS, s*, such that callable bond priced off the calibrated forward rate tree equals the market price. Note: this is also another optimization, because you will want to minimize (Pmkt P(s*))2 as a function of s*. Report your result to the nearest 1/10 of a basis point. Term 7 years Coupon UIN Dependent Call Price $101 Non-call period Market Price 2 years $98.50 The coupon is determined as follows: Coupon = 7.2 + ID/500, where ID is the last 2 digits of your UIN