Q Q Search You are given the following information on four coupon bonds. All coupons are paid annually. What are the one year, two year, and three year zero coupon bonds rates? Time to Maturity Bond A B D Coupon 5% 5.2% 6.1% 6.7% 1 year 1 year 2 years 3 years Yield to Maturity 4% 4% 4.7% 5.5% 2 Q Search Bond A Bond B Bond C Bond D Prices $1,009.62 $1,011.54 $1,026.14 $1,032.3 One year zero rate 4.0% Ywo-year rate PV of coupon Remaining PV Two-year rate $58.65 $967.49 4.721% Three-year rate PV of first coupon PV of second coupon Remaining PV Three-year rate $64.42 $61.09 $906.86 5.570% Q Q Search You are given the following information on four coupon bonds. All coupons are paid annually. What are the one year, two year, and three year zero coupon bonds rates? Time to Maturity Bond A B D Coupon 5% 5.2% 6.1% 6.7% 1 year 1 year 2 years 3 years Yield to Maturity 4% 4% 4.7% 5.5% 2 Q Search Bond A Bond B Bond C Bond D Prices $1,009.62 $1,011.54 $1,026.14 $1,032.3 One year zero rate 4.0% Ywo-year rate PV of coupon Remaining PV Two-year rate $58.65 $967.49 4.721% Three-year rate PV of first coupon PV of second coupon Remaining PV Three-year rate $64.42 $61.09 $906.86 5.570%