Question: Alternative Assignment 6 1.Answer questions 13a, and 13b. Part 13A. K = KRF+ IP + DRP + LP + MRP + SCP k = 2%

Alternative Assignment 6

1.Answer questions 13a, and 13b.

Part 13A.

K = KRF+ IP + DRP + LP + MRP + SCP k = 2% + 3% + 0% + 0% + 0% + 0% = 5%

Part 13B.

K = KRF+ IP + DRP + LP + MRP + SCP k = 2% + 2.5% + 0% + 0% + 0.6% + 0% = 5.1%

14A. Draw the yield curve for question

Yield

6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%

3 month 1-Year 5-Year 10-Year 20-Year 30-Year

The first curve start from 3.0% to 5.0% can't draw the line......

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