Question
The US Treasury yield curve for the first 36 months has the following YTMs (each YTM is measured as an EAR): A 6-month YTM of
The US Treasury yield curve for the first 36 months has the following YTMs (each YTM is measured as an EAR):
- A 6-month YTM of 2.3%.
- A 12-month YTM of 2.7%.
- An 18-month YTM of 2.8%.
- A 24-month YTM of 3.2%.
- A 30-month YTM of 3.6%.
- A 3-year YTM of 140.0%.
All YTMs come from US Treasury, zero-coupon bonds.
Determine the current price for each of the corresponding zero coupon bonds.
Report the current price for the 30-month zero. Express your answer in dollars and cents.
That's what it had given to me... I don't know the price of bonds too.
Chapter 7, Sandbox Problem 12 The US Treasury yield curve for the first 36 months has the following YTMs (each YTM is measured as an EAR): A6-month YTM of 2.3%. A 12-month YTM of 2.7%. An 18-month YTM of 2.8%. A 24-month YTM of 3.2%. A 30-month YTM of 3.6%. A 3-year YTM of 140.0%. All YTM's come from US Treasury, zero-coupon bonds. Determine the current price for each of the corresponding zero coupon bonds. Report the current price for the 30-month zero. Express your answer in dollars and cents. 915.38 margin of error +/- 1%Step by Step Solution
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Managing Finance A Socially Responsible Approach
Authors: D. Crowther
1st Edition
0750661011, 978-0750661010
