Q1Q2

Use the following information to answer QUESTIONS 1 - 6. You observe a six month treasury bill is yielding 2.40% and a two year treasury note has coupon of 4.20%. Assume all coupon paying bonds are trading at a par of 10 and pay semi-annually. Year (Period) Yield to maturity (96) Spot Rate (96) 0.5 (1) 2.4% 1.0 (2) D 1.5 (3) B E 2.0 (4) 4.20% Question 1 1 pts Answer with interpolated values, what is the value of cell A? (Round to 2 decimal places and do not include the percentage sign. For example, if the answer is 3.6789% then enter 3.68) D Question 2 1 pts Using interpolation, what is the value of cell B? (Round to 2 decimal places and do not include the percentage sign. For example, if the answer is 3.6789% then enter 3.68)