The following is a list of prices for zero-coupon bonds of various maturities. a. Calculate the...
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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 of () one year; (i) two years; (ii) three years; (iv) four years. Assume annual coupon payments. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Maturity (Years) Price of Bond YTM 1 $ 936.78 % 2 $ 926.47 % 3 $ 831.12 % 4 $ 777.49 % b. Calculate the forward rate for () the second year; (i) the third year; (ii) the fourth year. Assume annual coupon payments. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Maturity (years) Price of Bond $ 936.78 926.47 831.12 777.49 Maturity (Years) Price of Bond Forward Rate 2 $ 926.47 3 $ 831.12 % 4 $ 777.49 % 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 () one year; (i) two years; (ii) three years; (iv) four years. Assume annual coupon payments. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Maturity (Years) Price of Bond YTM 1 $ 936.78 % 2 $ 926.47 % 3 $ 831.12 % 4 $ 777.49 % b. Calculate the forward rate for () the second year; (i) the third year; (ii) the fourth year. Assume annual coupon payments. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Maturity (years) Price of Bond $ 936.78 926.47 831.12 777.49 Maturity (Years) Price of Bond Forward Rate 2 $ 926.47 3 $ 831.12 % 4 $ 777.49 %
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