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Please I would like to learn to solve this in Excel with detailed steps if possible, Thank you so much in advance. Q1) Calculate zero
Please I would like to learn to solve this in Excel with detailed steps if possible, Thank you so much in advance.
Q1) Calculate zero rates for maturities of 3 months, 6 months, 9 months, 12 months, and 15 months.
b) Calculate the par yield for the following bonds:
I. A 12-month bond that pays coupons semiannually.
II. A 12-month bond that pays coupons quarterly.
Note: Use Excel to answer this question and show your work. However, you should include the answers in the report you will submit. Part 1) You observe the following Treasury bills and bond prices available in Saudi Arabia Bond/Bill principal Time to maturity Annual coupon Bond price 100 0.25 0 99.15 100 0.50 0 98.25 100 0.75 0 97.2 100 1 6.2 (Quarterly payments) 102 100 1.25 6.4 (Quarterly Payments) 102.5 a) Calculate zero rates for maturities of 3 months, 6 months, 9 months, 12 months and 15 months. b) Calculate the par yield for the following bonds: 1. A 12-month bond that pays coupons semiannually. II. A 12-month bond that pays coupons quarterly. Note: Use Excel to answer this question and show your work. However, you should include the answers in the report you will submit. Part 1) You observe the following Treasury bills and bond prices available in Saudi Arabia Bond/Bill principal Time to maturity Annual coupon Bond price 100 0.25 0 99.15 100 0.50 0 98.25 100 0.75 0 97.2 100 1 6.2 (Quarterly payments) 102 100 1.25 6.4 (Quarterly Payments) 102.5 a) Calculate zero rates for maturities of 3 months, 6 months, 9 months, 12 months and 15 months. b) Calculate the par yield for the following bonds: 1. A 12-month bond that pays coupons semiannually. II. A 12-month bond that pays coupons quarterlyStep by Step Solution
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