Question
Multiple choice Q: U.S. Treasuries Price/YieldYear 1Year 2Year 3 Current YTM1.000%1.500%2.000% YTM=>CashFlow2yr1.500%101.500% YTM=>CashFlow3yr2.000%2.000%102.000% CF=>SpotRates1.000%1.504%2.014% SpotRates=>FwdRates1.000%2.010%3.041% Given the above market rates, what would a 3-Year 2%
Multiple choice Q:
U.S. Treasuries Price/YieldYear 1Year 2Year 3
Current YTM1.000%1.500%2.000%
YTM=>CashFlow2yr1.500%101.500%
YTM=>CashFlow3yr2.000%2.000%102.000%
CF=>SpotRates1.000%1.504%2.014%
SpotRates=>FwdRates1.000%2.010%3.041%
Given the above market rates, what would a 3-Year 2% annual risk free bond be worth?
Answer from one of the following:
98.57
97.14
97.17
102.94
100.00
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
