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Intro Treasury spot interest rates are as follows: Maturity (years) 1 2 3 4 Spot rate 1.6% 2.8% 3.7% 4.5% IB Attempt 1/10 for 10
Intro Treasury spot interest rates are as follows: Maturity (years) 1 2 3 4 Spot rate 1.6% 2.8% 3.7% 4.5% IB Attempt 1/10 for 10 pts. Part 1 What is the fair price of a Treasury note with 2 years to maturity, a $1,000 face value, and a coupon rate of 5.1%, paid annually (in $)? 0+ decimals Submit IB Attempt 1/10 for 10 pts. Part 2 Suppose this Treasury note is currently priced in the market fair and square (no mispricing), what is the yield to maturity? 4+ decimals Submit
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