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a. Calculate the spot rate's average logarithmic return and variance.

b. What is the rate's annualized mean and variance?

c. Calculate the spot rate's up and down parameters for periods with the following lengths:
i. One quarter \((h=\) length in years \(=1 / 4)\)
ii. One month \((h=1 / 12)\)
iii. One week \((h=1 / 52)\)
iv. One day \((h=1 / 360)\)
Excel Problems: Problems 8 and 9 can be done using the Excel program: "Binominal Bond Valuation-Callable and Putable.xls." The program can be downloaded from the text's website.