Q19. What are the Yield Curve and the Corresponding Price Curve? Chapter 5 Q20. Chapter 5 (In preparation for this question, workout Ex_5.2, 5.3.) The Table below shows a hypothetical benchmark yield curve for value as at 26 January 2010. The observed yields of the benchmark bonds that compose the curve are displayed in the last column. All rates are annualized and assume semi-annual compounding. The bonds all pay on the same coupon dates of 26 January, and as the value date is a coupon date, there is no accrued interest. Table: Hypothetical government benchmark bond yields as at 26 January 2010 Term to maturity Maturity Bond (Years) Coupon Price Gross Redemption Yield (YTM) (years) Date 1 1 5% 26-Jan-11 100 5% 2 2 6% 26-Jan-12 100 6% 3 3 7% 26-Jan-13 100 7% a) Calculate the implied forward rate from year 1 to year 3,f(1, 3)., from the spot rates in the above Table