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Consider the following US treasury rate table expressed in percentage. Maturity T R(0,t) Yesterday Last week Last Month 6 month 0.02 0.02 0.02 0.09 1

Consider the following US treasury rate table expressed in percentage.

Maturity

T R(0,t) Yesterday Last week Last Month

6 month 0.02 0.02 0.02 0.09

1 year 0.23 0.23 0.22 0.23

2 year 0.73 0.7 0.71 0.71

3 year 1.04 1.03 0.99 1.07

5 year 1.51 1.51 1.47 1.59

10 year 2.18 2.19 2.13 2.2

30 year 2.95 2.95 2.89 2.84

What is the the yield to maturity of a 2 year 5% bond with annual payments? (Hint:Use the General Formula to find the price first, then compute the yield to maturity)

.7321

.4837

.2323

.7182

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