Write a spreadsheet program to construct

Write a spreadsheet program to construct

1. Write a spreadsheet program to construct a series of bond tables that show the present value of a bond given the coupon rate, maturity, and yield to maturity. Assume that coupon payments are semiannual and yields are compounded semiannually.

2. Find the arbitrage opportunity (opportunities?). Assume for simplicity that coupons are paid annually. In each case the face value of the bond is $1,000.

Bond

Maturity (year)

Coupon, $

Price, $

A

3

0

751.30

B

4

50

842.30

C

4

120

1,065.28

D

4

100

980.57

E

3

140

1,120.12

F

3

70

1,001.62

G

2

0

834.00