Question: PLEASE SHOW WORKING IN EXCEL FILE. THANK YOU Question 6. You observe the Treasury yield curve below (all yield are shown on a bond equivalent

PLEASE SHOW WORKING IN EXCEL FILE. THANK YOU

Question 6. You observe the Treasury yield curve below (all yield are shown on a bond equivalent basis): Year 0.5 1.0 1.5 2.0 Yield to Mat t Rate Forward Rate 10.00% 9.75 9.50 9.25 10.00% 9.75 948 922 2.5 3.0 3.5 4.0 9.00 8.75 8.50 8.25 8.00 7.75 7.50 7.25 7.00 6.75 6.50 6.25 8.95 8.68 8.41 8.14 7.86 7.58 7.30 7.02 6.74 6.46 6.18 5.90 5.62 5.35 5.0 5.5 6.0 6.5 7.0 7.5 8,0 6.00 5.75 9.0 9.5 0.0 5.50 5.25 All the securities maturing from 1.5 years on are selling at par. The 0.5 year and one-year secunties are zero-coupon instruments a. Calculate the missing spot rates b. Cakculate the missing forward rates c. What should the price of the four year Treasuring security be

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