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Followings are parts of today's spot interest rates (yes, they can be of a fraction of a year), quoted as eective annual rates. maturity Effective

Followings are parts of today's spot interest rates (yes, they can be of a fraction of a year), quoted as eective annual rates.

maturity Effective Annual Rate
1-month 1%
5-month 6%
18-month 10%

There is a bond which pays $10 in the end of the rst month, $50 in the end of the fth month, and $1000 in the end of the eighteenth month.

(a) What are the holding period returns and APR for each maturity.

(b) What is the price of the bond?

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