Question
Hello everybody, can someone help me with this question. A 3-year treasury bond has a face value of $1000 and annual coupon of 8%. The
Hello everybody,
can someone help me with this question.
A 3-year treasury bond has a face value of $1000 and annual coupon of 8%. The 1-year spot rate is r1 = 2%, and the 1-year forward rates for the next two years are r2 = 4% and r3 = 5%.
a) Calculate the YTM of the t-bond
- c)Calculatethe2-andthe3-yearspotinterestrates
Thank you so much in advanceeeee!
Best regards, Sarah
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown, Sanford J. Leeds
11th Edition
1305262999, 1305262997, 035726164X, 978-1305262997
