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6 month 1-year rate 2-year rate 3-year rate 4-year rate 5-year rate 0.50% 0.72% 1.12% 2.9% 3.12% 4.40% Use the above spot rate curve to
6 month | 1-year rate | 2-year rate | 3-year rate | 4-year rate | 5-year rate |
0.50% | 0.72% | 1.12% | 2.9% | 3.12% | 4.40% |
Use the above spot rate curve to price a bond having 4-year maturity, coupon rate 2.8% pa paid annually, nominal value 1000 Euros. (Match each cash flow with the specific corresponding spot rate)
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