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(1)What is the spot rate? (2)Calculate the spot rates using the following zero coupon bonds. Assume semiannual compounding. Maturity Par value Price 0.5 year $1000
(1)What is the spot rate?
(2)Calculate the spot rates using the following zero coupon bonds. Assume semiannual compounding.
Maturity | Par value | Price |
---|---|---|
0.5 year | $1000 | $950 |
1 year | $1000 | $970 |
1.5 years | $1000 | $980 |
2 years | $1000 | $900 |
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