Question

Let’s suppose today is 1/4/2019 and you observe the information from various coupon bonds issued by

the Australian Government. Using the bond information, please complete the following tasks:

1. Construct the on-the-run-yield curve.

Maturity Date	CR (%)	Price	FV	Freq
2020/4/1	4.50	$103.09	$100.00	Annual
2021/4/1	5.75	$108.94	$100.00	Annual
2022/4/1	2.25	$102.97	$100.00	Annual
2023/4/1	5.50	$116.13	$100.00	Annual
2024/4/1	2.75	$106.25	$100.00	Annual

Answer 1

For drawing a yield curve on excel we first need to calculate the yield to maturities of individual bonds using the formula

After doing this plot the data in excel like below :

Time to Maturity	Yield to Maturity
1	1.37%
2	1.20%
3	1.24%
4	1.33%
5	1.45%

Select both the rows and in INSERT column and select scatter lines using smooth markers :