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Question 5. ou observe the Treasury yield curve below (all yield are shown on a...

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Question 5. ou observe the Treasury yield curve below (all yield are shown on a bond equivalent basis) Year 0.5 Yield to Maturit 5.25% 5.50 5.75 6.00 6.25 6.50 6.75 7.00 7.25 7.50 7.75 8.00 8.25 8.50 8.75 9.00 9.25 9.50 9.75 10.00 Spot Rate 5.25% 5.50 5.76 Forward Rate 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0 7.97 8.27 8.59 8.92 9.25 9.61 9.97 10.36 10.77 11.20 All the securities maturing from 1.5 years on are selling at par. The 0.5 year and one-year securities are zero-coupon instruments a. Calculate the missing spot rates b. What should the price of the six-year Treasuring security be? c. What are the implicit six-month forward rates starting in each period

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