Question: Please explain the answers using FORMULA. Do not attach an Excel Sheet with no formula 1. What is the price of bond A? What is

Please explain the answers using FORMULA. Do not attach an Excel Sheet

Please explain the answers using FORMULA. Do not attach an Excel Sheet with no formula

1. What is the price of bond A? What is the price of bond B? What is the price of bond C?

2. Construct the current (date 0) term-structure of spot interest rates. What is the current one-year spot interest rate r0,1? What is the current two-year spot interest rate r0,2? What is the current three-year spot interest rate r0,3?

You are a bond trader and see on your screen the following information on three bonds with annual coupon payments and par value of $100

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