Today we will have two bond markets, Series D and Series E. We will run a simple Dutch Auction for the bonds one more time.

Series D- They have a face value of $12, and they mature tomorrow (1 day=1 year)

Series E- Series E also have a face value of $12 but will mature in 13 days (1 day=1 year)

Here is what the results are -

For Series D, the equilibrium price was $10.50, for a yield to maturity of 14.29%. Series E had an equilibrium price of $4.51, for a yield to maturity of 7.81%.

a. Find the YTM of the bonds

b.Derive a yield curve for these bonds (the graph)

Thank you so much for your help and I will make sure to upvote immediately!