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The following is a list of prices for zero-coupon bonds of various maturities. a. Calculate the yield to maturity for a bond with a maturity

The following is a list of prices for zero-coupon bonds of various maturities.

a. Calculate the yield to maturity for a bond with a maturity of (i) one year; (ii) two years; (iii) three years; (iv) four years.

b. Calculate the forward rate for (i) the second year; (ii) the third year; (iii) the fourth year.

Maturity (years)

Price of Bond

1

$943.40

2

898.47

3

847.62

4

792.16

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