Question
A 5% Treasury note matures in 12 months and has $10,000 face value. If the 6-months and 12-months zero-coupon rates are 3% and 4% respectively,
A 5% Treasury note matures in 12 months and has $10,000 face value. If the 6-months and 12-months zero-coupon rates are 3% and 4% respectively, what is the YTM on the Treasury note? (The answer is 3.9876% how do you get there?)
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Introductory Econometrics For Finance
Authors: Chris Brooks
2nd Edition
052169468X, 9780521694681
