Question
Suppose you observe the following zero-coupon bond prices for a bond that pays $1 at maturity. Calculate the bond yields and the one-year implied forward
Suppose you observe the following zero-coupon bond prices for a bond that pays $1 at maturity. Calculate the bond yields and the one-year implied forward rate for each year. Show your answers to at least 3 decimal places.
| Years to Maturity | Zero-Coupon Bond Yield | Zero-Coupon Bond Price | One -Year Implied Forward Rate |
| 1 | 0.030 |
|
|
| 2 | 0.035 |
|
|
| 3 | 0.040 |
|
|
| 4 | 0.045 |
|
|
| 5 | 0.050 |
|
|
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Public Finance And Public Policy
Authors: Jonathan Gruber
7th Edition
1319281109, 9781319281106
