19. Spot interest rates and yields (S3.3) Look again at Table 3.6. Suppose the spot interest rates change to the following downward-sloping term structure: r1 = 4.6%, r2 = 4.4%, r3 = 4.2%, and r4 = 4.0%. Recalculate discount factors, bond prices, and yields to maturity for each of the bonds listed in the table.

Chapter 3 Valuing Bonds 81