Question
Use the following table to answer questions A, B, C, D Zero-coupon treasury (STRIP) Yield to Maturity 1 YEAR 6% 2 YEAR 5% 3 YEAR
- Use the following table to answer questions A, B, C, D
| Zero-coupon treasury (STRIP) | Yield to Maturity |
| 1 YEAR | 6% |
| 2 YEAR | 5% |
| 3 YEAR | 4% |
| 4 YEAR | 4% |
All bonds have a par value of $1,000.
A. Find the expected 1-year rate in 2 years from now (i.e. March 2021)
B. Find the 2-year rate in 1 year from now (i.e. March 2020)
C. What is the price of the 3-year bond today?
D. What will the price of the 3-year bond be in 2 years?
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Beyond Bitcoin Economics Of Digital Currencies And Blockchain Technologies
Authors: Hanna Halaburda, Miklos Sarvary, Guillaume Haeringer
2nd Edition
3030889300,3030889319
