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Term (years) 1 2 3 4 5 Zero-coupon YTM 5% 6% 7% 8% 9% Assume that zero-coupon coupon yields on default-free securities are as summarized
Term (years) | 1 | 2 | 3 | 4 | 5 |
Zero-coupon YTM | 5% | 6% | 7% | 8% | 9% |
Assume that zero-coupon coupon yields on default-free securities are as summarized in the table. Then consider that a 2year, default-free security with a face value of 1,000dollars and an annual coupon rate of 6%.
Q1.Find the yield to maturity for this bond.
Q2.Find the duration of this bond.
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