Need help with question 1 (a,b)

Today is year 0 . The term structure of interest rates (annually compounded) is given by 0r0,1= 10.52%,0r0,2=11.33%,000,3=11.96%, and 0r0,4=12.47%. Part a. Consider a floating rate note with a face value of $5,000. This floater pays a coupon in year t equal to tt1t1,t. The coupons are annual, and the reset dates for the floater are years 1,2 , and 3 . The floater matures on year 4 . The floater has no default risk. The floater has no caps or floors. What is the value of this floater when it is issued on year 0 ? Part b. Now assume today is 15 months from the original issue date of the floater. That is, today is 1.25 years from year 0 . In addition to the above information, you now know: 1r1,2=6.97%,1.25r1.26,2=8%, 1.2r1.26,3=9.1%, and 1.25r1.25,4=10.05%. If this floater is sold on year 1.25, assume the buyer of this floater receives the entire coupon paid at year 2. How much is the buyer willing to pay for this floater? Part c. Today is year 0. Consider a floater similar to that described in part a above. However, the coupon yield for year t is now equal to tt1rt1,t+2%. In other words, 2% is a margin added on top of the normal yield. Given this margin, how much is this new floater worth on year 0? Explain why your valuation procedure is correct. Part d. Today is year 0. Consider a floater similar to that described in part a above. However, the coupon yield for year t (where t equals 2,3 , or 4 ) is now equal to tt1rt1,t+2%. Furthermore, the coupon yield for year 1 is equal to 0r0,13%. When the early coupon yields have a negative margin, this is called a teaser rate. Today is year 0 . The term structure of interest rates (annually compounded) is given by 0r0,1= 10.52%,0r0,2=11.33%,000,3=11.96%, and 0r0,4=12.47%. Part a. Consider a floating rate note with a face value of $5,000. This floater pays a coupon in year t equal to tt1t1,t. The coupons are annual, and the reset dates for the floater are years 1,2 , and 3 . The floater matures on year 4 . The floater has no default risk. The floater has no caps or floors. What is the value of this floater when it is issued on year 0 ? Part b. Now assume today is 15 months from the original issue date of the floater. That is, today is 1.25 years from year 0 . In addition to the above information, you now know: 1r1,2=6.97%,1.25r1.26,2=8%, 1.2r1.26,3=9.1%, and 1.25r1.25,4=10.05%. If this floater is sold on year 1.25, assume the buyer of this floater receives the entire coupon paid at year 2. How much is the buyer willing to pay for this floater? Part c. Today is year 0. Consider a floater similar to that described in part a above. However, the coupon yield for year t is now equal to tt1rt1,t+2%. In other words, 2% is a margin added on top of the normal yield. Given this margin, how much is this new floater worth on year 0? Explain why your valuation procedure is correct. Part d. Today is year 0. Consider a floater similar to that described in part a above. However, the coupon yield for year t (where t equals 2,3 , or 4 ) is now equal to tt1rt1,t+2%. Furthermore, the coupon yield for year 1 is equal to 0r0,13%. When the early coupon yields have a negative margin, this is called a teaser rate