Consider the following information about the U.S. Treasury Securities: Maturity (in years) Coupon rate Price Yield to Maturity 0,5 0% $ 96,15 8,0% 1 0% $ 92,19 8,3% 1,5 8,5% $ 99,45 8,9% 2 9,0% $ 99,64 9,2% 2,5 11,0% $103,49 9,4% a) Calculate the theoretical 1.5-year spot rate based on the data outlined in the table. b) Calculate the theoretical 2-year spot rate based on the data outlined in the table
Consider the following information about the U.S. Treasury Securities: Maturity (in years) Coupon rate Price Yield to Maturity 0,5 0% $ 96,15 8,0% 1 0% $ 92,19 8,3% 1,5 8,5% $ 99,45 8,9% 2 9,0% $ 99,64 9,2% 2,5 11,0% $103,49 9,4% a) Calculate the theoretical 1.5-year spot rate based on the data outlined in the table. b) Calculate the theoretical 2-year spot rate based on the data outlined in the table
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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