Using the semi$-$innually compounded yield curve in Table $2\mathrm{.}4,$ price the following securities:

$($a$)5-$year zero coupon bond

$($b$)7-$year coupon bend paying $15\%$ semiannually

$($c$)4$ year coupon bond paying $7\%$ quarterly

$($d$)31/4$ year coupon bond paying $9\%$ semiannually

$($e$)4-$year floating rate bond with zero spread and semiannual payments

$($f$)\frac{21}{2}-$year floating rate bond with zero spread and annual payments

Using Table $2\mathrm{.}4,$ obtain the discount factor $Z(t,T)$ for each maturity $T-t$ from $0\mathrm{.}25$ to $7\mathrm{.}5$ years;

$Z(t,T)=\frac{1}{(1+\frac{tr(t,T)}{2}{)}^{2(T-t)}}$

$($g$)\frac{51}{2}-$year floating rate bond with $35$ basis point spread with quarterly payments

$($h$)71/4-$year floating rate bond wath $40$ basis point spread with semiannual pay$-$

Use $Z$ to price each bond:

a$.P_z(0,5)=100Z(0,5)=72\mathrm{.}80$

b$.P=157,n=2(0,7)=\frac{15}{2}{\displaystyle \underset{-1}{\overset{14}{}}}Z(0,\frac{i}{2})+100Z(0,7)=151\mathrm{.}23$

c$.P_0=$tin$-4(0,4)=\frac{Z}{4}{\displaystyle \underset{i=1}{\overset{16}{}}}Z(0,\frac{i}{4})+100Z(0,4)=101\mathrm{.}28$

d$.P_0=9R_n=2(0,3\mathrm{.}25)=\frac{2}{2}{\displaystyle \underset{-1}{\overset{2}{}}}Z(0,\frac{8}{2}-0\mathrm{.}25)+100Z(0,3\mathrm{.}25)=108\mathrm{.}55$

c$.100($sec Fact $2\mathrm{.}11)$ that $r_2(0)=6\mathrm{.}4\%$

Exereise $5.$

a$.$ When conpon of is equil to the yield to maturity $y$ the thod trades at par, when coupon is below

P

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$-=$

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$(7)$

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mentslease provide detailed Solutions using Excel I have provided the table and the solution manual for reference