Consider the following zero-coupon curve and five bonds with different maturities all paying 6% annual coupon. Calculate the following different "riding on the yield curve" strategies:

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3 Consider the following zero-coupon curve and five bonds with different maturities all paying 6% annual coupon. Calculate the following different "riding on the yield curve" strategies: Maturity(Years) Spot rate(%) 3.90 4.50 4.90 5.25 5.60 Bond Price At t=0 102.021 102.842 103.098 102.848 102.077 Att 1 102.021 102.842 102.098 102.848 2 3 4 (1) buy a 4 year bond and sell 1 year later. (2) buy a 3 year bond and sell 1 year later. (3) buy a 2 year bond and sell 1 year later. (4) buy a 5 year bond and sell 1 year later. What can one conclude from the above "riding on the yield curve" strategies? 3 Consider the following zero-coupon curve and five bonds with different maturities all paying 6% annual coupon. Calculate the following different "riding on the yield curve" strategies: Maturity(Years) Spot rate(%) 3.90 4.50 4.90 5.25 5.60 Bond Price At t=0 102.021 102.842 103.098 102.848 102.077 Att 1 102.021 102.842 102.098 102.848 2 3 4 (1) buy a 4 year bond and sell 1 year later. (2) buy a 3 year bond and sell 1 year later. (3) buy a 2 year bond and sell 1 year later. (4) buy a 5 year bond and sell 1 year later. What can one conclude from the above "riding on the yield curve" strategies