Table $1$ contains a term structure of continuously compounded interest rates for US treasury

debt, on October $31,2022.$ Table $2$ contains treasury bond prices listed in the WSJ on October

$31,2022.$ You will use both tables to $($i$)$ price a bond you are interested in$,$ and $($ii$)$ assess the

current state of the economy. The following questions will guide you through these objectives.

Table $2$: Treasury bond prices in the WSJ on October $31,$

$2022$

Table $1$: Term structure of

continuously compounded

rates, on October $31,2022$

Remember that US treasury bonds:

Pay coupons semiannually

Use the actual$/$actual convention for accrued

interest calculations

Use Table $2$ to determine the missing value in Table $1-$ the continuously compounded

rate for cash flows arriving on July $31,2023($remember "today", $t,$ is October $31,2022).$

a$.$ Clearly indicate what bond in Table $2$ you are using for your calculations $($A$,$ B$,$

$C,D,$ or E$).[10\%]$

b$.$ For the chosen bond, use the midprice, and determine the dirty $($mid$)$price$.$

c$.$ From the dirty price and information in Table $1,$ determine the discount factor,

$Z(t,T),$ where $t=$ October $31,2022$ and $T=$ July $31,2023.$

d$.$ From the discount factor, extract the continuously compounded rate, $r(t,T).$