Question: Excel solution preferred. Don't worry about graphing. 5. Given the term structure below, (a) calculate forward and par yields, (b) plot all three yield curves

 Excel solution preferred. Don't worry about graphing. 5. Given the term

Excel solution preferred. Don't worry about graphing.

5. Given the term structure below, (a) calculate forward and par yields, (b) plot all three yield curves on one graph. n ;F ip 1 2 3 4 5 6 3.50% 3.80% 4.20% 4.40% 4.60% 5.00% 5.30% 5.70% 6.10% 6.40% 6.80% 7.20% 7 8 9 10 11 12 ANS: e.g. for n=5, 4.56%, 5.40% 5. Given the term structure below, (a) calculate forward and par yields, (b) plot all three yield curves on one graph. n ;F ip 1 2 3 4 5 6 3.50% 3.80% 4.20% 4.40% 4.60% 5.00% 5.30% 5.70% 6.10% 6.40% 6.80% 7.20% 7 8 9 10 11 12 ANS: e.g. for n=5, 4.56%, 5.40%

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