Question
The current zero-coupon yield curve for risk-free bonds is as follows: Maturity (years) 1 2 3 4 5 YTM 4.99 % 5.47% 5.73% 5.92% 6.09%
The current zero-coupon yield curve for risk-free bonds is as follows:
| Maturity (years) | 1 | 2 | 3 | 4 | 5 |
| YTM | 4.99 % | 5.47% | 5.73% | 5.92% | 6.09% |
What is the price per
$ 100
face value of a two-year, zero-coupon, risk-free bond?
The price per
$ 100
face value of the two-year, zero-coupon, risk-free bond is
$
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Financial Risk Manager Handbook
Authors: Philippe Jorion, Global Association Of Risk Professionals
5th Edition
0470479612, 978-0470479612
