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Information below is the downloaded from Federal Reserve's treasury yield curve website: Maturity 1235 YTM 0.260% 0.600% 0.860% 1.130% All yields are par yield. le
Information below is the downloaded from Federal Reserve's treasury yield curve website: Maturity 1235 YTM 0.260% 0.600% 0.860% 1.130% All yields are par yield. le coupon rate same as ytm and bond priced at par of 100. Q1a. Fine 4-year yield using avg of 3Y and 5Y yield; Q1b. Find discount factor for 19, 2y,3y, 4y, and 5y zero coupon bond. Q1c. Find spot rates for all years Q1d. Find forward rate for all years. Q2a. Price the following cash flows: i. 5 year 6% coupon bond; ii. 5 year 0.5% coupon bond. Q2b. What are the YTMs for both bonds in part 2a
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