Using the following spot rates for the following 4 strips of a 2-year semi-annual 3N coupon T-Note, what would you expect the YTM of this bond to be? Term Spor Rate 6month 6.19% 12 month 8.5 18 month .5ow 24 month 9.54% 4.76 8.94 32% 9.52% 14.63%

Using the following spot rates for the following 4 strips of a 2-year semi-annual 3N coupon T-Note, what would you expect the YTM of this bond to be? Term Spor Rate 6month 6.19% 12 month 8.5 18 month .5ow 24 month 9.54% 4.76 8.94 32% 9.52% 14.63%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Using the following spot rates for the following 4 strips of a 2-year semi-annual 3% coupon T-Note, what would you
expect the YTM of this bond to be?
Term
Spot Rate
6 month 6.19%
12 month 8.51
18 month 9.5O%
24 month 9.54%
4.76
8.94%
832%
• 9.52%
14.63%

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