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Below is a list of zero coupon bonds for various maturities: Maturity Price 6 Months 96.5251 12 months 92.9913 18 months 89.1566 a) Calculate the
Below is a list of zero coupon bonds for various maturities:
Maturity | Price |
6 Months | 96.5251 |
12 months | 92.9913 |
18 months | 89.1566 |
a) Calculate the 6-month, 12-month, and 18-month spot interest rates. b) An 8% coupon bond will mature in 18 months. Calculate the price of this bond.
c) Calculate the implied forward rate for 6 months to 12 months (6F12).
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