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Please solve and show with using Excel. 4.26. The table below gives Treasury zero rates and cash flows on a Treasury bond. Zero rates are

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Please solve and show with using Excel.

4.26. The table below gives Treasury zero rates and cash flows on a Treasury bond. Zero rates are continuously compounded. (a) What is the bond's theorctical price? (b) What is the hond's yield assuming it sells for its theoretical price! Maturity (wears) Zero rade Cour power Principal 0.5 2.0% S20 1.0 2.3% 1.5 2.7% 2.0 3.2% S1.000 es $20 520 $20

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