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Q63. You are interested in valuing a 2-year semi-annual corporate coupon bond using spot rates but there are no liquid strips available. However, you do
Q63. You are interested in valuing a 2-year semi-annual corporate coupon bond using spot rates but there are no liquid strips available. However, you do find the following 4 comparable semi-annual bonds (below) maturing over the next 2 years. Use the bootstrapping approach to calculate the 18-month spot rate. Time remaining to maturity' Coupon Bond pricee' 6 months+ 0.000%+' 99.000+' +' 1.250%+' 98.000 1 yearv 18 months' 1.500%+' 97.000. 2 years 1.789964 1.250%96.000 3.093964 3.105%+' 3.572%+' 3.577964
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