Question
Q1. Consider the following par bond (ie coupon rate=yield): Year 3. 5 7 10 Yld 0.83% 1.22% 1.45% 1.54% Q1a. based on linear interpolation, what
Q1. Consider the following par bond (ie coupon rate=yield):
Year 3. 5 7 10 Yld 0.83% 1.22% 1.45% 1.54%
Q1a. based on linear interpolation, what is the expected yield for a 10 year note ONE year later, assuming yield curve shape stays the same?
Q1b. how much should the 10y note be priced 1 year later (as a 9 year note)?
Q2. Consider 3 zero coupon bond:
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International Finance
Authors: Keith Pilbeam
2nd Edition
0333730976, 978-0333730973
