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Q7-Q8. (2 Points) Q7. The following is a list of prices for zero-coupon bonds of various maturities. Maturity (Years) Price of Bond ($) 94.07 88.39

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Q7-Q8. (2 Points) Q7. The following is a list of prices for zero-coupon bonds of various maturities. Maturity (Years) Price of Bond ($) 94.07 88.39 82.27 70.5 The yield to maturity for the 3 year bond is closest to a. 4% b. 5% c. 6% d. 7% Q8. The implied forward rate of interest between year 4 and year 6 is closest to a. 6% b. 7% C. 8% d. 9% 2346

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