The prices (per $1000 in face value) of zero-coupon bonds in the U.S. that prevailed on 8/31/09 (at the height of the great recession following the financial crisis in 2008) are shown below. Price (per $1000 in face value) $996.81 $982.24 $958.01 $927.48 $890.76 Maturity Date 08/31/10 YTM 08/31/11 08/31/12 08/31/13 08/31/14

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
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Problem 4:
The prices (per $1000 in face value) of zero-coupon bonds in the U.S. that prevailed on 8/31/09
(at the height of the great recession following the financial crisis in 2008) are shown below.
Price
(per $1000 in face value)
$996.81
$982.24
$958.01
$927.48
$890.76
$852.27
$813.09
$783.30
$751.84
$716.50
$684.95
Maturity Date
YTM
08/31/10
08/31/11
08/31/12
08/31/13
08/31/14
08/31/15
08/31/16
08/31/17
08/31/18
08/31/19
08/31/20
Question: What was the zero yield curve for US Treasuries on 8/31/09? (Keep you answers, as
we will use your answers on the next problem set.)
Transcribed Image Text:Problem 4: The prices (per $1000 in face value) of zero-coupon bonds in the U.S. that prevailed on 8/31/09 (at the height of the great recession following the financial crisis in 2008) are shown below. Price (per $1000 in face value) $996.81 $982.24 $958.01 $927.48 $890.76 $852.27 $813.09 $783.30 $751.84 $716.50 $684.95 Maturity Date YTM 08/31/10 08/31/11 08/31/12 08/31/13 08/31/14 08/31/15 08/31/16 08/31/17 08/31/18 08/31/19 08/31/20 Question: What was the zero yield curve for US Treasuries on 8/31/09? (Keep you answers, as we will use your answers on the next problem set.)
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