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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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