finance finding the fra future rate

1. (60) Points

(a) (10 Points) From your favorite source find and show me the yield to maturity for 2-year and 5-year bonds. Make sure to tell me where you found these numbers. A web address would do.

(b) (30 Points) Calculate FRA(2,5): A three year Forward rate that starts at the end of Year 2, and ends at the end of Year 5.

(c) (20 Points) Suppose, somehow the market decided that the FRA(2,5) was the average of the 2-year rate and the 5-year rate. Calculate how much money you can make by taking advantage of such a mis pricing, if this is indeed a mis pricing.

2. (40 Points)

(a) (10 Points) From your favorite source, find the money market rates (LIBOR) for 3-months and 6-months.

(b) (20 Points) calculate the FRA(3,6) for a 3-month forward rate that starts at the end of month 3 and ends at the end of month 6

(c) (10 Points) Find out from Eurodollar futures, the appropriate contract (it will not be exact) that should correspond to FRA(3,6). Is your rate similar? Why or why not?

TO answer these questions,, please watch this playlist..

https://www.youtube.com/playlist?list=PLP2wwagjBmCouPlR8hEfa_PGQMs8j8I_P

THIS to be done on excel..

#write essay #research paper #blog writing #article writing #academic writer #reflective paper #essay pro #types of essays #write my essay #reflective essay #paper writer #essay writing service #essay writer free #essay helper #write my paper #assignment writer #write my essay for me #write an essay for me #uk essay #thesis writer #dissertation writing services #writing a research paper #academic essay #dissertation help #easy essay #do my essay #paper writing service #buy essay #essay writing help #essay service #dissertation writing #online essay writer #write my paper for me #types of essay writing #essay writing website #write my essay for free #reflective report #type my essay #thesis writing services #write paper for me #research paper writing service #essay paper #professional essay writers #write my essay online #essay help online #write my research paper #dissertation writing help #websites that write papers for you for free #write my essay for me cheap #pay someone to write my paper #pay someone to write my research paper #Essaywriting #Academicwriting #Assignmenthelp #Nursingassignment #Nursinghomework #Psychologyassignment #Physicsassignment #Philosophyassignment #Religionassignment #History #Writing #writingtips #Students #universityassignment #onlinewriting #savvyessaywriters #onlineprowriters #assignmentcollection #excelsiorwriters #writinghub #study #exclusivewritings #myassignmentgeek #expertwriters #art #transcription #grammer #college #highschool #StudentsHelpingStudents #studentshirt #StudentShoe #StudentShoes #studentshoponline #studentshopping #studentshouse #StudentShoutout #studentshowcase2017 #StudentsHub #studentsieuczy #StudentsIn #studentsinberlin #studentsinbusiness #StudentsInDubai #studentsininternational