Question: Show all your work clearly on the spreadsheet. Write your steps in a textbox if you need to give additional information. 01) 25 pts It's

 Show all your work clearly on the spreadsheet. Write your steps

Show all your work clearly on the spreadsheet. Write your steps in a textbox if you need to give additional information. 01) 25 pts It's lunchtime. You are starving, but you are almost broke You have 100 TL left but you do not want to spend it for lunch without making additional money. While you were wandering around, you bump into your old university mate who works as a bond trader. You seized the opportunity as you are confident of your Financial Engineering skills. You can buy any of the following bonds from your mate if you have enough money and can sell it immediately in the market for its current worth. You have got a single trading option (You can buy and sell only once). You obviously want to make as much money as possible. All of the bonds that your mate sells have a face value of 100 TL Given the case, can you make money to get a lunch today? If yes, how? If not, why? Explain. Bond 1: Zero-coupon bond with 3 year to maturity is for sale at 70.13 TL Bond 2: 3-year bond with 18% coupon is for sale at 99.79 TL Bond 3:3-year bond with 17% coupon is for sale at 85.26 TL The prevailing market rates at that moment are as follows: Maturity Spot Rate [year) 18.63% 19.67% 20.16% 21.12% 1 2 4

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