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Using the semi-annually compounded yield curve in the table below, calculate the prices of the following securities (all with par value of $100): a. 2-year

Using the semi-annually compounded yield curve in the table below, calculate the prices of the following securities (all with par value of $100): a. 2-year floating rate bond with semi-annual payments b. 2 1/2-year floating rate bond with annual payments (next coupon to be paid in 6 months is 6.8%) c. 2 1/2-year floating rate bond with a spread of 40 bps making semi-annual payments (i.e. the floater pays the floating market rate + 40 bps

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Maturity Yield 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 6.33% 6.49% 6.62% 6.71% 6.79% 6.84% 6.879 6.88% 6.89% 6.88% Maturity Yield 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 6.33% 6.49% 6.62% 6.71% 6.79% 6.84% 6.879 6.88% 6.89% 6.88%

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