Question: Show work in excel with formulas Question 2 8 pts Spot rates today are as follows: 1-year 2.5% 2-year 2.75% 3-year 3.00% 4-year 3.25% Calculate
Show work in excel with formulas
Question 2 8 pts Spot rates today are as follows: 1-year 2.5% 2-year 2.75% 3-year 3.00% 4-year 3.25% Calculate the market price of a 4-year, 3.5% bond (annual payments) 3 years from today, just after the bond had made its 3rd coupon payment, assuming that the expectations hypothesis is true. Report your answer to the nearest penny (do not do intermediate rounding as you work through the steps of this problem). Question 2 8 pts Spot rates today are as follows: 1-year 2.5% 2-year 2.75% 3-year 3.00% 4-year 3.25% Calculate the market price of a 4-year, 3.5% bond (annual payments) 3 years from today, just after the bond had made its 3rd coupon payment, assuming that the expectations hypothesis is true. Report your answer to the nearest penny (do not do intermediate rounding as you work through the steps of this problem)
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