Question: Given instruments in the following table ( a ) Extract the semiannual discount factors for 1 0 years using the boot - strap method with

Given instruments in the following table
(a) Extract the semiannual discount factors for 10 years using the boot-
strap method with linear and log-linear interpolation in discount
factors.
(b) On the same graph, plot the semiannual zero-coupon yields (For-
mula 2.8 with w=0) for 6m,1y,dots,10y maturities for linear and
log -linear interpolation methods.
(c) Using the discount factor curve from the log-linear interpolation,
compute the price of a 5-year, 1% semiannual coupon bond and
convert the price using Fiormula 2.5 to a semiannual yield. Do the
same with a semiannual coupon rate of 8% to observe the compon
effect on yields.
Hint: See Table 2.5
TAELE 2.5 Hint for bootstrap problem.
 Given instruments in the following table (a) Extract the semiannual discount

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