A bond has a maturity of 3 years and a coupon of 4.24%. The price is 100.19. The six month T-bill rate is 3.80%. The
A bond has a maturity of 3 years and a coupon of 4.24%. The price is 100.19. The six month T-bill rate is 3.80%. The one year T-bill rate is 3.86%. The rate for discounting a 1.5 year zero is 3.97%. The 2.5 year spot rate is 4.14% and the three year spot rate is 4.18. What is the two year spot rate? (round to the nearest hundredth)
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Authors: David Hartzell, Andrew E. Baum
2nd Edition
1119526094, 978-1119526094
