Question
QUESTION TWO Yield to maturities, par values and market prices for government securities (with annual interests) are given in the following table: Maturity (Years) Yield
QUESTION TWO
Yield to maturities, par values and market prices for government securities (with annual interests) are given in the following table:
| Maturity (Years) | Yield to maturity | Par Value (K) | Market Price (K) |
| 1 | 3% | 100 | 101.25 |
| 2 | 4% | 100 | 103.50 |
| 3 | 5% | 100 | 104.25 |
Assuming that the yields to maturities are equal to the coupon rates, calculate the one
year, two year and three year spot rates.
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Municipal Finances A Handbook For Local Governments
Authors: Catherine D. Farvacque-Vitkovic, Mihaly Kopanyi
1st Edition
082139830X, 978-0821398302
