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Question 5 1 pts From the Treasury strip yield curve, the current required yields on one- and two-year Treasuries are i = 4.65 percent and

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Question 5 1 pts From the Treasury strip yield curve, the current required yields on one- and two-year Treasuries are i = 4.65 percent and i2 = 5.50 percent, respectively. Further, the current yield curve indicates that appropriate one-year discount bonds are yielding k = 8.5 percent, and two-year bonds are yielding k = 10.25 percent. (1) Calculate the one-year forward rate on the Treasuries. Convert your answer to percentage format. Enter your answer rounded to 2 decimals, and without any units. So, for example, if your answer is 3.4568%, then just enter 3.46. Question 6 Assume the same information as in the previous question . (2) Calculate the one-year forward rate on the corporate bond. Convert your answer to percentage format. Enter your answer rounded to 2 decimals, and without any units. So, for example, if your answer is 3.4568%, then just enter 3.46. 1 pts Question 7 1 pts Assume the same information as in the previous question . (3) Using the current and forward one-year rates, calculate the marginal probability of repayment on the corporate bond in year 1. Note: Round your probability information to four decimal places, So, for example, if your answer is 0.83459, then just enter 0.8346

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