Maturity 1 2 3 5 YTM 0.260% 0.600% 0.860% 1.130%

All yields are par yield. Ie 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 1y, 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?