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Here is a table of spot rates: Spot Rates Time t (years) 1 Spot Rate rt 0.400% 0.900% 2 3 1.200% 4 1.300% 5 1.400%
Here is a table of spot rates: Spot Rates Time t (years) 1 Spot Rate rt 0.400% 0.900% 2 3 1.200% 4 1.300% 5 1.400% Using the above yield curve, price a $25,000 face value 5 year bond that pays annual coupons of 4.500% a. $29,246.75 O b. $28,717.42 C. $28,749.46 O d. $28,980.56 O e. $27,945.91 Certainty : C=1 (Unsure: 67%) OC=3 (Quite sure: >80%)
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