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(2) What is the 6-month forward rate beginning 1 year from today? Four Treasury securities data from today's Wall Street Journal are provided below: Par
(2) What is the 6-month forward rate beginning 1 year from today?
Four Treasury securities data from today's Wall Street Journal are provided below: Par Treasury Annual Bond Security Maturity Coupon Price Value A T-bill 6 months 0% $984.0240 $1,000 B T-bill 1 year 0% $966.1280 $1,000 C T-note 18 months 3.875% $999.0625 $1,000 D T-note 2 years 4.625% $1,009.0625$1,000 Please note that actual coupons are paid semi-annually, i.e., one half of the annual coupon. Based on the information given above, please answer the following four questions: (1) What are the zero prices for the 6-month, the 1-year, the 18-month, and the 2-year Treasury securities above, respectivelyStep by Step Solution
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