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 Price | Zero-Coupon Bond Yield | One - Year Implied Forward Rate |
|---|---|---|---|
| 1 | .96154 | ||
| 2 | .91572 | ||
| 3 | .87630 | ||
| 4 | .82270 | ||
| 5 | .77611 |
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Finance Introduction To Institutions Investments And Management
Authors: Ronald W. Melicher, Edgar A. Norton
12th Edition
0471675792, 9780471675792
