Question: using excel format please answer this question Section 3 Note: Use Excel to answer this question and show your work. However, you should include the
using excel format please answer this question 
Section 3 Note: Use Excel to answer this question and show your work. However, you should include the answers in the report you will submit. Part 1) You observe the following Treasury bills and bond prices available in Saudi Arabia Bond/Bill principal 100 100 100 100 100 Time to maturity 0.25 0.50 0.75 1 1.25 Annual coupon 0 0 0 6.2 (Quarterly payments) 6.4 (Quarterly Payments) Bond price 99.15 98.25 97.2 102 102.5 a) Calculate zero rates for maturities of 3 months, 6 months, 9 months, 12 months and 15 months. b) Calculate the par yield for the following bonds: I. A 12-month bond that pays coupons semiannually. II. A 12-month bond that pays coupons quarterly
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
