Question: Please show excel formulas The following table gives Treasury zero rates and cash flows on a Treasury bond. Assume the zero rates are continuously compounded.

Please show excel formulas

The following table gives Treasury zero rates and cash flows on a Treasury bond. Assume the zero rates are continuously compounded.

Maturity (years) Zero rate Coupon payment Principal PV of cash flows
0.5 2.0% $20
1.0 2.3% $20
1.5 2.7% $20
2.0 3.2% $20 $1,000
Find the present value of the cash flows (coupon payment and principal) for each period.
What is the bond's theoretical price?
What is the bond's yield-to-maturity (expressed with semiannual compounding)?

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