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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.) YTM Maturity (Years) 1 % 2 3 Price of Bond $ 980.90 $ 914.97 $ 843.12 $ 771.76 % % % 4 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 2 Price of Bond $ 980.90 914.97 43.12 771.76 Forward Rate Maturity (Years) 2 Price of Bond $ 914.97 % 3 $ 843.12 % 4 $ 771.76 %
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