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All yields are compounded semi-annually Maturity Yield 0.5 1% p.a. 1 2.5% p.a. 1.5 3.5% p.a. 2 4.3% p.a. A. Compute zero yields from information
All yields are compounded semi-annually
Maturity | Yield |
0.5 | 1% p.a. |
1 | 2.5% p.a. |
1.5 | 3.5% p.a. |
2 | 4.3% p.a. |
A. Compute zero yields from information in the chart
B. What is the price of a 2 year T-note that pays 5% p.a. coupons?
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