Suppose that on March $27,2025,$ an investor owns euro $100,000$ of the French OAT benchmark $7\mathrm{.}5\%$ maturing in April $2035.$ This bond pays coupon flows of euro $7,500$ each over the next $10$ years and returns the principal investment at maturity. One of these flows occurs in $6\mathrm{.}08$ years, between the standard vertices of $5$ and $7$ years $($for which volatilities and correlations are available$).$ RiskMetrics data for March $27,2025$ RiskMetrics Yield, $\%$ Price volatility Correlation Matrix Vertes $(1\mathrm{.}65$t $),\%$ ij $5$yr $7$yr $5$yr $7\mathrm{.}6280\mathrm{.}5331\mathrm{.}0000\mathrm{.}9637$yr $7\mathrm{.}7940\mathrm{.}6960\mathrm{.}9631\mathrm{.}000$ To Do $1.$ Please follow the steps in the example in Lecture Notes #$6.$ First, calculate the actual cash flow$$s interpolated yield. $2.$ Then determine the actual cash flow$$s present value. You may use PV$=$Cash Flow$/(1+$yield$)^($time period$).3.$ Calculate the standard deviation of the price return on the actual cash flow. Please remember that the volatility represents $1\mathrm{.}65$xt $.4.$ Calculate both and $(1-$$).$ Again you need to convert $1\mathrm{.}65$t into t $.5.$ Then allocate the present value of cash flow into RiskMetrics vertex cash flows. That means cash flow for vertex $5$ and cash flow for vertex $7.$