.I will provide the partial solution for question 1: There are specific instructions in the HW attached. The main questions are 1. Please include a solution to the previous assignment, deriving the...

.I will provide the partial solution for question 1: There are specific instructions in the HW attached. The main questions are


1. Please include a solution to the previous assignment, deriving the partial equilibrium values for this stylized defaultable bond from first principles.2.Continuing that narrative, explain the utility framework and find an expression for the the value of "expression attached in the HW1"3.In terms of this optimal control, simplify the formula for the equilibrium value of the bond and the equivalent par yield, and describe any constraints on the relative risk aversion.4. Plot the equivalent par yield versus the absolute risk aversion (over its domain) for a stylized bond with T = 10., r = 0., γ = 0.001, and L = 0.5.

Thanks


Homework1 Due, Friday 01 Mar Instruction 1. Follow the Power-Point provided step by step and read the Introduction for better understanding of the questions. 2. Use MATLAB live-script to write the code with comments 3. Need a narrative explanation in addition to the code for every answer 4. Must show step by step how the expressions are driven for every question with results. (Don’t forget the answer to all the questions) 5. Late submissions aren’t accepted. Grading Rubric Points will be taken off if the instruction is not followed, if I can’t reproduce your results in the last question with the code and documentation you provide, and if your report or presentation is not clear and professional, and doesn’t include citations and collaboration statements **Solution to the previous assignment will be provided Problems