On 21 February 2021, you see the following figures in Les chos de Moulinsart for Belgian government

On 21 February 2021, you see the following figures in Les échos de Moulinsart for Belgian government zero-coupon bonds (which only pay a single coupon with the principal on maturity of a total amount of 100):

Maturity Price 20 February 2022 96.25 20 February 2023 91.92 20 February 2024 87.38 20 February 2025 82.90 20 February 2026 78.35 20 February 2027 74.20 20 February 2028 70.13 Calculate the yield to maturity for each zero-coupon bond.

You estimate that the Butchery Withoutbones risk requires a spread of 58 basis points (0.58%) compared with government bonds. Calculate the value of the Butchery Withoutbones bond from Exercise 1.

AppendixLO1