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The cash prices of 6-month and 1-year Treasury bills are R940.0 and R890.0. A 1.5-year bond that will pay coupons of R40 every 6 months
The cash prices of 6-month and 1-year Treasury bills are R940.0 and R890.0. A 1.5-year bond that will pay coupons of R40 every 6 months currently sells for R948.40. A 2-year bond that will pay coupons of R50 every 6 months currently sells for R971.20. Calculate the 6-month, 1-year, 1.5-year, and 2- year zero rates. [10marks]
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