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Suppose the current, zero-coupon, yield curve for risks free bonds is as follows. Maturity years 1 YTM 5.00%, Maturity Years 2 YTM 5.50%, Maturity years
Suppose the current, zero-coupon, yield curve for risks free bonds is as follows.
Maturity years 1 YTM 5.00%, Maturity Years 2 YTM 5.50%, Maturity years 3 YTM 5.75%, Maturity Years 4 YTM 5.95%, Maturity years 5 6.05%. Please be detailed with answers
A. what is the price per $ 100 face value of a 2 year, zero coupon risk free bond? The price is (round to the nearest cent)
B. What is the price per $100.00 face value of a 4-year, zero coupon, risk free bond? The price is (round to the nearest cent)
C. What is the risk free interest rate for a 5-year maturity? The risk free rate is (round to two decimal places)
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