Read first the document "Additional comments on pricing a Bond", then submit an excel file addressing the following elements:
1. Construct a theoretical spot yield curve using a bootstrapping technique and data in excel document "Maturity & YTM for 10 Hypothetical European Treasury securities 2016"
2. Using the resulting curve, price a 5 year, 3%pa coupon bond (semi- annual coupons), requiring a European Treasury + 400 basis points discount rate.
3. What is the implied YTM for such bond?
Attachment:- Assignment.rar