Question
Based on economists forecasts and analysis, one-year Treasury bill rates and liquidity premiums for the next four years are expected to be as follows: 1
Based on economists forecasts and analysis, one-year Treasury bill rates and liquidity premiums for the next four years are expected to be as follows:
| 1R1 = | 5.65% | ||
| E(2r1) = | 6.75% | L2 = | 0.05% |
| E(3r1) = | 6.85% | L3 = | 0.10% |
| E(4r1) = | 7.15% | L4 = | 0.12% |
Calculate the yield to maturity for four years. (Round your percentage answers to 2 decimal places. (e.g., 32.16))
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Options Futures And Other Derivatives
Authors: John C. Hull
7th Edition
0136015867, 9780136015864
