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13. Current prices for US Treasury, zero-coupon bonds (each with face values of $1000), are as follows: A 6-month zero coupon is currently selling for

13. Current prices for US Treasury, zero-coupon bonds (each with face values of $1000), are as follows:

  • A 6-month zero coupon is currently selling for $986.3.
  • A 12-month zero coupon is currently selling for $965.38.
  • An 18-month zero coupon is currently selling for $941.1.
  • A 24-month zero coupon is currently selling for $912.07.

All YTMs come from US Treasury, zero-coupon bonds.

Determine the YTM for each bond, and then plot as much of the yield curve as you can.

After you finish constructing the yield curve, report the YTM (as an effective annual rate) for the 18-month zero-coupon bond.

Express your answer as a decimal, not as a percent, using at least four significant digits.

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