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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. (Do not round intermediate calculations. Round your answers to two decimal places.) Maturity (Years) Price of Bond 1 $ 953.40 2 $ 903.47 3 $ 852.62 4 787.66 YTM 4.89% 5.21% 5.46% 6.15% 09 b. Calculate the forward rate for (i) the second year; (ii) the third year; (iii) the fourth year. (Do not round intermediate calculations. Round your answers to two decimal places.) Maturity (years) 1 Price of Bond $ 953.40 903.47 852.62 787.66 2 3 4 % Maturity (Years) Price of Bond 2 $ 903.47 3 $ 852.62 4 S 787.66 Forward Rate % % %
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