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4 Below is a list of prices for $1,000-par zero-coupon Treasury securities of various maturities. An 11% coupon $100 par bond pays an semi-annual coupon

4

Below is a list of prices for $1,000-par zero-coupon Treasury securities of various maturities. An 11% coupon $100 par bond pays an semi-annual coupon and will mature in 1.5 years. What should be the YTM on the bond? Assume semi-annual interest compounding for this question.

Maturity (periods) /Price of $1,000 par bond

1 943.4 2 873.52 3 790

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