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Maturity YTM Maturity YTM Maturity YTM 1 year 8 . 0 0 % 7 year 9 . 1 5 % 1 3 year 1 0

Maturity YTM Maturity YTM Maturity YTM
1 year 8.00%7 year 9.15%13 year 10.45%
2 year 8.11%8 year 9.25%14 year 10.65%
3 year 8.20%9 year 9.35%15 year 10.75%
4 year 8.50%10 year 9.47%16 year 10.95%
5 year 8.75%11 year 9.52%17 year 11.00%
6 year 8.85%12 year 9.77%18 year 11.25%
6. You just bought a 15 year maturity Xerox corporate bond rated AA with a 0% coupon. You expect to hold the bond for 5 years and then sell it. Assuming that the forward rate is an accurate, unbiased estimate of the expected future spot rate find the expected sale price of the bond in 5 years to the nearest dollar (watch out for rounding error).
a. $394
b. $449
c. $383
d. $329
e. $428

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