Current Treasury Yield Curve: MaturitiesCurrent Yields: 3 month 5.0% 6 month 4.7% 12 month 4.1% 2 year 3.6% 5 year 3.5% 10 year 3.7% 30 year 4.0% U.S. Treasury that matures in exactly 5 years: Current Price Yield to maturity Coupon Rate Par Value: 4.0% 100 What should the yield to maturity be for this U.S. Treasury above that has a 4% coupon and matures in exactly 5 years? Indicate your answer by referencing the correct cell(s) above: Given the current yield for 5-year Treasury notes, how could you model and calculate the current price for this 4% coupon Treasury? Please use formulas and cell references to show your work and rationale: Create a yield curve chart in Excel using the data in the table above. Please ensure that your axes are properly labeled to receive full credit.
Current Treasury Yield Curve: MaturitiesCurrent Yields: 3 month 5.0% 6 month 4.7% 12 month 4.1% 2 year 3.6% 5 year 3.5% 10 year 3.7% 30 year 4.0% U.S. Treasury that matures in exactly 5 years: Current Price Yield to maturity Coupon Rate Par Value: 4.0% 100 What should the yield to maturity be for this U.S. Treasury above that has a 4% coupon and matures in exactly 5 years? Indicate your answer by referencing the correct cell(s) above: Given the current yield for 5-year Treasury notes, how could you model and calculate the current price for this 4% coupon Treasury? Please use formulas and cell references to show your work and rationale: Create a yield curve chart in Excel using the data in the table above. Please ensure that your axes are properly labeled to receive full credit.
Chapter21: International Cash Management
Section: Chapter Questions
Problem 18QA
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Transcribed Image Text:Current Treasury Yield Curve:
MaturitiesCurrent Yields:
3 month
5.0%
6 month
4.7%
12 month
4.1%
2 year
3.6%
5 year
3.5%
10 year
3.7%
30 year
4.0%
U.S. Treasury that matures in exactly 5 years:
Current Price
Yield to maturity
Coupon Rate
Par Value:
4.0%
100
What should the yield to maturity be for this U.S. Treasury above that has a 4% coupon and matures in exactly 5 years?
Indicate your answer by referencing the correct cell(s) above:
Given the current yield for 5-year Treasury notes, how could you model and calculate the current price for this 4% coupon Treasury?
Please use formulas and cell references to show your work and rationale:
Create a yield curve chart in Excel using the data in the table above. Please ensure that your axes are properly labeled to receive full credit.
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