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Q4. Use the semi-annually compounded yield curve in the following table to price some fixed...

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Q4. Use the semi-annually compounded yield curve in the following table to price some fixed income securities: Maturity T Yield r2 (0,T) 0.50 6.49% 1.00 6.71% 1.5 6.84% 2 6.88% (a) 1.5-year zero coupon bond (b) 2-year coupon bond paying 15% semiannually (d) 1.5-year coupon bond paying 9% annually (e) 2-year floating rate bond with zero spread and semiannual payments (f) 1.5-year floating rate bond with zero spread and annual payments. For this question, assume r1(-0.5,0.5) = 6%. (h) 1.5-year floating rate bond with 40 basis point spread with annual payments. For this question, assume r (-0.5, 0.5) = 6%. Q4. Use the semi-annually compounded yield curve in the following table to price some fixed income securities: Maturity T Yield r2 (0,T) 0.50 6.49% 1.00 6.71% 1.5 6.84% 2 6.88% (a) 1.5-year zero coupon bond (b) 2-year coupon bond paying 15% semiannually (d) 1.5-year coupon bond paying 9% annually (e) 2-year floating rate bond with zero spread and semiannual payments (f) 1.5-year floating rate bond with zero spread and annual payments. For this question, assume r1(-0.5,0.5) = 6%. (h) 1.5-year floating rate bond with 40 basis point spread with annual payments. For this question, assume r (-0.5, 0.5) = 6%

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