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Please show the calculate work. 1) The following is a depiction of the current yield curve for constant maturity US treasuries: Rates in Percentage points

image text in transcribedimage text in transcribedPlease show the calculate work.

1) The following is a depiction of the current yield curve for constant maturity US treasuries: Rates in Percentage points Date 1 Yr 2 Yr 3 Yr 5 Yr 7 Yr 10 Yr 20 Yr 30 Yr 09/23/16 0.60 0.77 0.90 1.16 1.44 1.62 2.02 2.34 Using the rates above calculate the following forward rates: 1) The one year rate one year from September 23, 2016. 2) The one year rate two years from September 23, 2016. 3) The two year rate three years from September 23, 2016. 4) The two year rate five years from September 23, 2016. 5) The three year rate two years from September 23, 2016. 2) Bond Calculations: 1) Avon Products Note 06.5% Coupon: 6.500% Maturity : 5 years Rating: Moodys: BAA3 Price: $ 108.093 Calculate: Yield to maturity. S&P: BBB- 2) SAFEWAY INC SR NT 5.00000% Coupon: 5.000% Maturity: 5 years S&P: BBB Rating: Moodys'BAA3 Price: $ 101.180 a) Calculate: Yield to maturity. b) Suppose the bond is callable in 3 years at $ 110. Using the price above find the yield to call. (Hint: use the FV to be $110 instead of $ 100. And the time to maturity 3 years instead of 5 years

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