Question: I need step by step manual solutions by putting formulas not by excel. Total: 40 points. Show all wo relevant formulae in excel, substantial penalties

I need step by step manual solutions by putting formulas not by excel.  I need step by step manual solutions by putting formulas not

Total: 40 points. Show all wo relevant formulae in excel, substantial penalties otherwise) (annotate ake tation is c of the questions. Excel table rules apply (show no more than 1 page of repeated rows, 5-point penalty otherwise). 1. [15 pts] Use the par yield curve below to price the cash flows given in the left-most column. Quote the price to the closest penny Period Maturity (yrs) Yield (BEY CF(S) 0.5 0.5 10 20 100 -30 1.5 2.5 3.5 50 100 7.5 10 8.4 1,000 2. [15 pts] Give and describe the no-arbitrage table to price a 2-year zero coupon loan 2 years from now, accounting for the actions of all parties. For concreteness sake, use the par yield curve in question 1. What is the lockable, annualized rate for such a loan? 3. [10 pts] Briefly describe the expectations hypothesis, and how the liquidity preference theory accounts for the observation that the yield curve tends to be upward sloped, rather than what is predicted by the expectations hypothesis Total: 40 points. Show all wo relevant formulae in excel, substantial penalties otherwise) (annotate ake tation is c of the questions. Excel table rules apply (show no more than 1 page of repeated rows, 5-point penalty otherwise). 1. [15 pts] Use the par yield curve below to price the cash flows given in the left-most column. Quote the price to the closest penny Period Maturity (yrs) Yield (BEY CF(S) 0.5 0.5 10 20 100 -30 1.5 2.5 3.5 50 100 7.5 10 8.4 1,000 2. [15 pts] Give and describe the no-arbitrage table to price a 2-year zero coupon loan 2 years from now, accounting for the actions of all parties. For concreteness sake, use the par yield curve in question 1. What is the lockable, annualized rate for such a loan? 3. [10 pts] Briefly describe the expectations hypothesis, and how the liquidity preference theory accounts for the observation that the yield curve tends to be upward sloped, rather than what is predicted by the expectations hypothesis

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