Total: 40 points. relevant formulae in excel, substantial penalties otherwise). (annotate of the questions, Excel table rules apply (show no more than 1 page of repeated rows, 5-point penalty otherwise) 1. [15 pts] Use the par yield curve below to price the cash flows given in the left-most column. Quote the price to the closest penny. Period Maturity grs) Vield (REY CF(S) 0.5 1.5 2 5 35 4.5 0.5 20 100 50 100 7.5 10 84 1000 2. [15 pts] Give and describe the no-arbitrage table to price a from now, accounting for the actions of all parties. For concreteness sake, use the par yield curve in question 1. What is the lockable, annualized 2-year zero coupon loan 2 years rate for such a loan? 3. [10 pts] Briefly describe the expectations hypothesis, and how the liquidity preference theory accounts for the observation that the yield curve tends to be upward sloped, rather than what is predicted by the expectations