Question
A fixed income analyst at XYZ Wealth Management Company finds the following treasury yield curve (see table below). Assume that the 1.5 yr T-note is
A fixed income analyst at XYZ Wealth Management Company finds the following treasury yield curve (see table below). Assume that the 1.5 yr T-note is trading at par value ($100). Based on the information, compute the 1.5 yr spot rate. All treasury securities follow semi-annual compounding.
| Years to maturity | Yield to Maturity |
| 0.5 | 4.6% |
| 1 | 5.0% |
| 1.5 | 5.50% |
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Public Finance In Theory And Practice
Authors: Richard Abel Musgrave, Peggy B. Muscrave
5th Edition
0070441278, 978-0070441279
