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1. The prices of 6-month and 1-year Treasury bills, expressed as a percentage of par, are 99.5025 and 98.0296 respectively. The 2-year Treasury note that
1. The prices of 6-month and 1-year Treasury bills, expressed as a percentage of par, are 99.5025 and 98.0296 respectively. The 2-year Treasury note that sells at par pays 4.0% coupon rate. i. Use linear interpolation to estimate the 18-month par yield. ii. Use boostrapping to determine the 18- and 24-month zero rates, and fill in the table. maturity (years) zero rate (%) .5 1.5 2 1. The prices of 6-month and 1-year Treasury bills, expressed as a percentage of par, are 99.5025 and 98.0296 respectively. The 2-year Treasury note that sells at par pays 4.0% coupon rate. i. Use linear interpolation to estimate the 18-month par yield. ii. Use boostrapping to determine the 18- and 24-month zero rates, and fill in the table. maturity (years) zero rate (%) .5 1.5 2
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