Question
The following table lists the annual spot rates for the next 4 years: Time (years) Rate (%) 1 2.6 2 3.4 3 4.47 4 5.36
The following table lists the annual spot rates for the next 4 years:
| Time (years) | Rate (%) |
| 1 | 2.6 |
| 2 | 3.4 |
| 3 | 4.47 |
| 4 | 5.36 |
Under these conditions, what would be the yield to maturity on a 2 year risk free bond paying a 4.3% annual-payment coupon?
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The Business Of Personal Finance
Authors: Joseph Calandro Jr, John Hoffmire
1st Edition
1032104562, 978-1032104560
