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Consider the following 5 zero-coupon bonds: Determine 1-5 year spot rates Maturity Spot Rate Price S961.44 $907.03 $839.62 $762.89 $680.58 TL a. What is the

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Consider the following 5 zero-coupon bonds: Determine 1-5 year spot rates Maturity Spot Rate Price S961.44 $907.03 $839.62 $762.89 $680.58 TL a. What is the fair price for a 5-year coupon bond with 8% coupon tare? b. What is the YTM of this bond? c. What is the price of a 5-year coupon bond with 8% coupon and 7.684% YTM? d. What are the one-year (implied) forward rates for years 1 - 5? e. Compute the price for the above coupon bond (the one mentioned in part a) using one-year rates. f. What is the "Current Yield" for this bond? g. What is the HPR if you buy the bond now and hold it for one year, assuming that the YTM remains constant? h. What is the HPR if you buy the bond now and hold it for one year, assuming that the term structure of interest rates remains unchanged? 1. What is the HPR if you buy the bond now and hold it for two years, but as soon as you bought the bond, YTM increases to 10%

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