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Intro Treasury spot interest rates are as follows: Maturity (years) 1 2 3 4 Spot rate (EAR) 2.5% 2.8% 3.5% 4.5% Part 1 What is
Intro
Treasury spot interest rates are as follows:
Maturity (years) | 1 | 2 | 3 | 4 |
Spot rate (EAR) | 2.5% | 2.8% | 3.5% | 4.5% |
Part 1
What is the price of a risk-free zero-coupon bond with 3 years to maturity and a face value of $1,000 (in $)?
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