Question You are given the following with respect to Treasury securities as of today, May 13, 2015: Years to Maturity Security A .5 B 1.0 C 1.5 D 2.0 Coupon Rate 0% 0% 6% 5% Question You are given the following yield curve: Years to Maturity Yield Rate on a Zero-Coupon Bond 3.1% 2 3.5% 3 4.9% 4 4.9% 1 Yield to Maturity 3.0% 3.2% 3.5% 3.6% The coupon rate is compounded semiannually and the yield to maturity is an annual effective rate. Calculate the 1.5-year spot rate. Find the yield rate of an investment that pays $100 at the end of each year for 3 years. Possible Answers A 3.2% B 3.5% C 3.7% D 4.1% E 4.3% Question You are given the following yield curve: Term of Investment 1 year 2 year Spot Rates 3% 5% 8% 3 year 4% 4 year Given that the 1-year forward rate, deferred 4 years is 5.6%, find the 5-year spot rate. Possible Answers A 3.95 B 4.32 C 5.08 T 6.21 7.52 Possible Answers A 3.7 B 3.9 C 4.1 D 4.3 E 4.5 Question i Determine the 3-year spot rate given the following information about $1000 par value annual coupon bonds maturing at par: Term in Years Coupon Rate Yield to Maturity 1 3.6% 4% 2 4.1% 6% 3 4.9% 8% Possible Answers A 8.14 B 6.16 C 8.64 D 6.25 E 7.91