Please provide detail in each step

1 Given the following Benchmark Par cure information: Bond price Maturity(years) 2 4 Par Rate 2.0 2.2 2.25 2.4 100 100 100 100 Using Bootstrapping method ( see page 483) to calculate underlying one- year spot rates of the Par rates and one -year implied forward rate based on one-year spot rate of the Par rates 2 Given the following Binomial Interest Rate tree at 10 % interest rate volatility(see page 418 Exhibit 11) Year 2 5.5258 4.5242 3.7041 Year 0 Year 3.8695 2.500 3.1681 Valuation ofa Default Free three-year 4, 5% Annual coupon Bond Callable at Price 100.2 one year and Two Years from Now at 10% interest rate volatility. 3. Given the Binomial interest Rate tree at 10% interest rate volatility stated in question 2, valuation of Default-Free three year 4.5 % annual coupon Bond at putable at Price 99 one year and two year at 10 % interest rate volatility 4. Given the Binomial interest Rate tree at 10% interest rate volatility stated in question 2, Valuation of a three Floater Capped at 4.8% at the 10 % interest rate volatility. 5. Given the Binomial interest Rate tree at 10% interest rate volatility stated in question 2, valuation of a Three-year Libor Floored at 3.3% at the 10% interest Rate volatility