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Problem #5 Using the following table of government T-bill and bond data, calculate (i.e. bootstrap) the implied 18 month spot rate. Maturity (years) 0.5 1.0

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Problem #5 Using the following table of government T-bill and bond data, calculate (i.e. "bootstrap") the implied 18 month spot rate. Maturity (years) 0.5 1.0 1.5 Yield to Maturity 6.00% 6.75% 7.30% Spot Rate 6.00% 6.75% ??? GOC Maturing in 18 months Bond Par Value Coupon Yield to Maturity Settlement Date Maturity Date Bond Price $100.00 8.50% 7.30% Jan-31-22 Jul-31-23 $101.68

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