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please use & show how to produce answer in Excel formula so that I may learn, thanks The following table shows the prices of a
please use & show how to produce answer in Excel formula so that I may learn, thanks
The following table shows the prices of a sample of Narnian Treasury strips in December 2018. Each strip makes a single payment of $1,000 at maturity. Maturity December 2020 December 2021 December 2022 December 2023 Price (%) 90.703 85.892 81.491 77.243 a. Calculate the annually compounded, spot interest rate for each year. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Spot Interest Rate % Maturity December 2020 December 2021 December 2022 December 2023 % PI % % b. Is the term structure upward- or downward-sloping or flat? Downward-sloping Upward-sloping Flat c. Would you expect the yield on a coupon bond maturing in December 2023 to be higher or lower than the yield on the 2020 strip? Higher Lower
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