Question
Please note that the following spot rates are commonly used in Problem 1 8. Given Treasury spot rates as following: Maturity Zero Rates (%) 0.5
Please note that the following spot rates are commonly used in Problem 1 8.
Given Treasury spot rates as following:
Maturity | Zero Rates (%) |
0.5 | 4.45 |
1.0 | 5.45 |
1.5 | 5.54 |
2.0 | 6.45 |
what is the price of a semi-annually compounded Treasury STRIPS with 6-month maturity and $1 face value ? (Enter your answer as a decimal rounded to 4 decimal places)
5.Use the same data given in the problem 1 and calculate the price of a semi-annually compounded Treasury bond with 2-year maturity, 4% coupon rate and $1 face value. (Enter your answer as a decimal rounded to 4 decimal places)
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