Question: Please answer all questions correctly as asked. Show all calculations and work. fQuestion 8 Years 5 7.75 9.25 8.5 Yield 7.75 5.5 6.5 4.5 Spot

 Please answer all questions correctly as asked. Show all calculations and

Please answer all questions correctly as asked. Show all calculations and work.

work. \fQuestion 8 Years 5 7.75 9.25 8.5 Yield 7.75 5.5 6.5

\fQuestion 8 Years 5 7.75 9.25 8.5 Yield 7.75 5.5 6.5 4.5 Spot Rate 7.78 5.52 6.53 4.52 The first spot rate had already been given In the first example;if the spot rate is 7.78 when the yield is 7.75 what about when the yield is 5.5? Used cross multiplication as below and click on the cell to see the formula 7.75=7.78 5.5=? 5.52129 N.B:The treasury securities have similar yield to maturity and spot rate. This is because they have involatile(Involatility nature) Question 8 Years 5 7.75 9.25 8.5 Yield 7.75 5.5 6.5 4.5 Spot Rate 7.78 5.52 6.53 4.52 The first spot rate had already been given In the first example;if the spot rate is 7.78 when the yield is 7.75 what about when the yield is 5.5? Used cross multiplication as below and click on the cell to see the formula 7.75=7.78 5.5=? 5.52129 N.B:The treasury securities have similar yield to maturity and spot rate. This is because they have involatile(Involatility nature)

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