following table contains data to calculate forward rates using pure expectations theory. a) Find the yield on a 8 year bond, 2 years forward (2r8). b) Find the yield on a 6 year bond, 3 years forward (3r6). Maturity Yield 1 year 2.00% 2 years 2.20% 3 years 3.40% 4 years 4.50% 5 years 5.00% 6 year 5.00% 7 years 5.20% 8 years 5.40% 9 years 5.50% 10 years 5.50%
following table contains data to calculate forward rates using pure expectations theory. a) Find the yield on a 8 year bond, 2 years forward (2r8). b) Find the yield on a 6 year bond, 3 years forward (3r6). Maturity Yield 1 year 2.00% 2 years 2.20% 3 years 3.40% 4 years 4.50% 5 years 5.00% 6 year 5.00% 7 years 5.20% 8 years 5.40% 9 years 5.50% 10 years 5.50%
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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The following table contains data to calculate forward rates using pure expectations theory.
a) Find the yield on a 8 year bond, 2 years forward (2r8).
b) Find the yield on a 6 year bond, 3 years forward (3r6).
Maturity Yield
1 year 2.00%
2 years 2.20%
3 years 3.40%
4 years 4.50%
5 years 5.00%
6 year 5.00%
7 years 5.20%
8 years 5.40%
9 years 5.50%
10 years 5.50%
Please help me with this show the work and do it in excel
Many thanks
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