answer a, b, c, d, e

Question 3. Simple Bootstrapping You have fives bonds as shown in the below. Three are zero coupon bonds and the other two are coupon bonds. By applying bootstrapping you would like to compute each spot rate for each bond and figure out the spot rate curve urity Coupon Bond Price Zero Rates Principal 100 100 100 100 100 Bond 0.25 0.50 1.00 1.50 2.00 97.5 94.9 90.0 96.0 101.6 4 12 a Compute the spot rate using the bootstrapping method. b. Draw the spot rate curve c. Is that an upward slope or downward slope? d. What is the spread between a 2 year bond rate and a month yield? e. Based on the answer of d, do you think the slope is steep