Question
Consider the following par bond (ie coupon rate=yield): Maturity: 1 2 3 4 5 YTM: 5%; 4.5%; 4%; 3.5%; 3.2% Q1. Calculate discount factor for
Consider the following par bond (ie coupon rate=yield):
Maturity: 1 2 3 4 5
YTM: 5%; 4.5%; 4%; 3.5%; 3.2%
Q1. Calculate discount factor for all 5 years
Q2. Calculate spot rates for all 5 years
Q3. Calculate forward rates for all 5 years
Q4. Price a 5 year 10% coupon bond. What is the YTM for the bond?
Q5. Price a 5 year 2% coupon bond. What is the YTM for the bond?
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
9th Edition
0324656122, 978-0324656121
