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Today is 15 May 2021. Stphanie has just purchased a Treasury bond with a face value of $100, maturing at par and paying coupon at
Today is 15 May 2021. Stphanie has just purchased a Treasury bond with a face value of $100, maturing at par and paying coupon at j2 = 3.4% p.a. The purchase price was $99.803. The maturity date of this bond is 15 May 2023. b) Use linear interpolation to calculate the yield rate. Give your answer in j2 form, rounded to 3 decimal places. Hint: 1.65% per half year and 1.9% per half year are the lower bound and the upper bound for the linear interpolation O a. 3.339% O b. 1.752% O c. 3.504% O d. 3.550%
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