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3. Use the following spot yield curve: Time 1 2 3 4 5 6 7 8 Spot Rate 1.6% 2.4% 2.8% 3.1% 3.5% 3.9% 4.2%
3. Use the following spot yield curve: Time 1 2 3 4 5 6 7 8 Spot Rate 1.6% 2.4% 2.8% 3.1% 3.5% 3.9% 4.2% 5.0% A 5-year annuity due pays X annually. The price of the annuity due is 948.69. Determine the level annual yield rate on the annuity. (This is a numerical answer)
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