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The 6-month T-bill rate is 3.85% and the one year T-bill rate is 4.24%. The spot rate on a 1.5 year T-bill is 4.36% and
The 6-month T-bill rate is 3.85% and the one year T-bill rate is 4.24%. The spot rate on a 1.5 year T-bill is 4.36% and the two year spot rate is 4.42%. What is the price of a 2 year bond with a 4.24% coupon? (assume a face value of 100. report your answer to the nearest penny)
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