Question: Using excel and the internet (I highly recommend using Yahoo Finance), collect the daily price data for the Russell 2000 Index from Sept 9, 1927

  1. Using excel and the internet (I highly recommend using Yahoo Finance), collect the daily price data for the Russell 2000 Index from Sept 9, 1927 to Mar 27, 2022 (inclusive) and calculate the following:
    1. The average return over the period
    2. The variance over the period
    3. The standard deviation over the period

Please provide your excel with working formulas (10 pts total).

  1. Price out a bond with the following characteristics
  • 15 year maturity
  • 6.2% coupon bond
  • 2.25% risk free rate
  • 3.15% credit spread
  • $1000 face value

Please show your work in excel. If the bond is being offered initially for $100, should you buy it based on your calculation (6 points)?

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