just answer b and c

2. Deriving Discount Factors, Replication - 30 Points (a) Without using a spreadsheet or any other software, compute the discount factors for the periods 10.1 and 0,2) implied by the following coupon bond prices and cash flows: Price Cash Flow Time 2 0 1 2 965.0 1000 O Bond 1 Bond 2 1011 50 1050 (b) Using a spreadsheet or any other software, compute the discount factors for the periods [0, 1], T = 1,2,3,4,5 implied by the following coupon bond prices and cash flows: Price Cash Flow Time ? 0 1 2 3 1 5 Bond 1 1000 1010 0 0 0 0 0 Bond 2 1028 20 1020 0 0 0 Bond 3 30 1030 0 0 1063 1118 Bond 4 40 40 10 1040 0 Bond 5 1191 30 50 50 1050 (c) Using the coupon bonds in 2b how can we construct a portfolio to obtain the following desired cash flow? And how much would it cost? Cash Flow Time T 1 2 3 4 5 R 100 80 60 60 60 (d) Using the coupon bonds in 2b how can we replicate the 4-year zero. That is, construct a portfolio to obtain the following desired cash flow Cash Flow Time T 1 2 3 1 2 3 1 K 0 0 0 1 0 2