The following Treasury Note prices have been observed for annual coupon paying bonds in the market as of 9/15/2014.

Date	Coupon Rate	Price in Decimals
9/15/2015	3.5%	100.00000
9/15/2016	3.5%	100.47299
9/15/2017	3.5%	101.39991
9/15/2018	3.5%	102.54795
9/15/2019	3.5%	103.97606
9/15/2020	3.5%	105.22412

a. Calculate the discount factors implied by the market prices above.

b. Calculate the Spot Rates that correspond with the discount factors in #1 above. Use effective annual compounding conventions.

c. Using the Discount Factors you calculated in #1 calculate the Theoretical Fair Value of a 4 year 4% annual coupon bond maturing on 9/15/2018. ( Assume today is 9/15/2014.)

d. Using the discount factors or spot rates from #1 or 2 above, calculate the coupon rate the Treasury would need to offer on a four year annual coupon Treasury Note to result in an issuance price of par or 100.

e. Using the Spot rates from #2 above calculate the following two Forward Rates (Effective Annual Compounding).

R4,1 =

R1,2 =

Could you show both excel and non-excel please