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Please solve using Excel and show formulas. Thank you! Use the following data for settlement date May 28, 2010 to answer the following questions: (assume
Please solve using Excel and show formulas. Thank you!
Use the following data for settlement date May 28, 2010 to answer the following questions: (assume semi-annual payments, and par values of $100) Coupon Rate (%) 1.25% 4.875% 4.5% 4.75% 3.375% 3.5% 2% 2.25% 2.125% Maturity 11/30/2010 5/31/2011 11/30/2011 5/31/2012 11/30/2012 5/31/2013 11/30/2013 5/31/2014 11/30/2014 Price 100.550 104.513 105.856 107.966 105.869 106.760 101.552 101.936 100.834 a) Compute the annualized yield to maturity of the bonds given above. (10 points) b) Estimate the term-structure of interest rates using the coupon bonds given above. (10 points) c) Plot the yield curve and term structure on the same graph. (10 points) d) Estimate the price of a 0.75%, November 30, 2011 maturity bond as of May 28, 2010. (10 points) Use the following data for settlement date May 28, 2010 to answer the following questions: (assume semi-annual payments, and par values of $100) Coupon Rate (%) 1.25% 4.875% 4.5% 4.75% 3.375% 3.5% 2% 2.25% 2.125% Maturity 11/30/2010 5/31/2011 11/30/2011 5/31/2012 11/30/2012 5/31/2013 11/30/2013 5/31/2014 11/30/2014 Price 100.550 104.513 105.856 107.966 105.869 106.760 101.552 101.936 100.834 a) Compute the annualized yield to maturity of the bonds given above. (10 points) b) Estimate the term-structure of interest rates using the coupon bonds given above. (10 points) c) Plot the yield curve and term structure on the same graph. (10 points) d) Estimate the price of a 0.75%, November 30, 2011 maturity bond as of May 28, 2010. (10 points)Step by Step Solution
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