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A Treasury ZCB maturing in 2 years trades for 95:10. What is the 2-year risk-free rate of return: by method shown in the image Recall,

A Treasury ZCB maturing in 2 years trades for 95:10. What is the 2-year risk-free rate of return:

by method shown in the image

Recall, P=2Ci=1i=2TD(2i)+$100D(T) If coupon is zero, P=$100D(T) Thus, if I have ZCB of different maturities D(T)=(1+2r(T))2T1

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