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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; (i) two years; (ii) three years; (iv) four years. (Do not round intermediate calculations. Round your answers to two decimal places.) Maturity (Years) Price of Bond $930.00 $902.97 $829.62 $772.99 YTM 4 b. Calculate the forward rate for () the second year (i) the third year; ii) the fourth year. (Do not round intermediate calculations. Round your answers to two decimal places.) Maturity (years) Price of Bond $ 930.00 902.97 829.62 772.99 Maturity (Years) Price of Bond $902.97 $829.62 $772.99 Forward Rate 4
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