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Use Excel to answer this question Part 1) You observe the following Treasury bills and bond prices available in Saudi Arabia Bond/Bill principal Time to
Use Excel to answer this question
Part 1) You observe the following Treasury bills and bond prices available in Saudi Arabia Bond/Bill principal Time to maturity Annual coupon Bond price 100 0.25 0 99.15 100 0.50 0 98.25 100 0.75 0 97.2 100 1 6.2 (Quarterly payments) 102 100 1.25 6.4 (Quarterly Payments) 102.5 a) Calculate zero rates for maturities of 3 months, 6 months, 9 months, 12 months and 15 months. b) Calculate the par yield for the following bonds: I. A 12-month bond that pays coupons semiannually. II. A 12-month bond that pays coupons quarterlyStep by Step Solution
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