Q5-6

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 100 and pay semi-annually. Year (Period) Yield to maturity (%) Spot Rate (%) 0.5 (1) 2.4% 1.0 (2) A 1.5 (3) B E 2.0 (4) 4.20% Question 5 2 pts What is the value of cell E? (Round to 4 decimal places and do not include the percentage sign. For example, if the answer is 3.67892% then enter 3.6789) Question 6 1 pts Assume the value for A - 3.1%, B = 3.7%, C -2.4%, D = 3.1054%, E - 3.7156%. What is the price of a 5% treasury note that matures in one year with par value of 100? (Round to 4 decimal places and do not include the dollar sign. For example if the price is 98.56789 enter 98.5679) 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 100 and pay semi-annually. Year (Period) Yield to maturity (%) Spot Rate (%) 0.5 (1) 2.4% 1.0 (2) A 1.5 (3) B E 2.0 (4) 4.20% Question 5 2 pts What is the value of cell E? (Round to 4 decimal places and do not include the percentage sign. For example, if the answer is 3.67892% then enter 3.6789) Question 6 1 pts Assume the value for A - 3.1%, B = 3.7%, C -2.4%, D = 3.1054%, E - 3.7156%. What is the price of a 5% treasury note that matures in one year with par value of 100? (Round to 4 decimal places and do not include the dollar sign. For example if the price is 98.56789 enter 98.5679)