Question: Please I need help with this one I believe it is with excel, can you show me the formulas and steps, thank you! Bootstrap: You

Please I need help with this one I believe it is with excel, can you show me the formulas and steps, thank you!

Bootstrap: You are given these prices for three Treasuries with semi-annual payments: a) Construct combinations, or portfolios, of these securities that replicate (mimic) zero coupon bonds with maturities 0.5,1.0, and 1.5 years. (10 points) b) Use the synthetic zeros (coupon securities held in a portfolio that mimic zeros) to compute their prices. (10 points) c) Use the prices of zeros to compute spot rates and forward rates. (10 points) Bootstrap: You are given these prices for three Treasuries with semi-annual payments: a) Construct combinations, or portfolios, of these securities that replicate (mimic) zero coupon bonds with maturities 0.5,1.0, and 1.5 years. (10 points) b) Use the synthetic zeros (coupon securities held in a portfolio that mimic zeros) to compute their prices. (10 points) c) Use the prices of zeros to compute spot rates and forward rates. (10 points)

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