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Problem 2 [2pts] Suppose the current spot rates are: Spot rates rate Time to maturity (years) ro.25 1.6% 0.25 2.0% 0.5 2.4% 0.75 11 2.8%

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Problem 2 [2pts] Suppose the current spot rates are: Spot rates rate Time to maturity (years) ro.25 1.6% 0.25 2.0% 0.5 2.4% 0.75 11 2.8% 1 ros 10.75 What is the price of the 1-year coupon bond paying a coupon rate of 8% per year quarterly and a face value of $100

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