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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

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.

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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