Question
The following table summarises prices of various default-free zero-coupon bonds (expressed as a percentage of the face value): Maturity Price (per $100 facevalue) 1 year
The following table summarises prices of various default-free zero-coupon bonds (expressed as a percentage of the face value):
Maturity | Price (per $100 facevalue) |
|
1 year | 96.9496.94 | |
2 years | 92.6092.60 | |
3 years | 88.0688.06 | |
4 years | 83.2583.25 | |
5 years | 78.10 |
a.The yield on the 1-year bond is%.
(Enter your response as a percent rounded to two decimal places.)
The yield on the 2-year bond is%.
(Enter your response as a percent rounded to two decimal places.)
The yield on the 3-year bond is%.
(Enter your response as a percent rounded to two decimal places.)
The yield on the 4-year bond is%.
(Enter your response as a percent rounded to two decimal places.)
The yield on the 5-year bond is%.
(Enter your response as a percent rounded to two decimal places.)
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