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Years to maturity Yield 0.5 4.6% 1.0 5.0% 1.5 5.4% 2.0 5.8% Assuming that the yields on the 0.5-year and 1-year bonds are their respective

Years to maturity Yield

0.5 4.6%

1.0 5.0%

1.5 5.4%

2.0 5.8%

Assuming that the yields on the 0.5-year and 1-year bonds are their respective spot rates, compute the 1.5-year and spot rate. Don't write answer is decimals (i.e. if result is .04 write answer as 4)

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Years to maturity	Yield
0.5	4.6%
1.0	5.0%
1.5	5.4%
2.0	5.8%

Question

Years to maturity Yield 0.5 4.6% 1.0 5.0% 1.5 5.4% 2.0 5.8% Assuming that the yields on the 0.5-year and 1-year bonds are their respective

Years to maturity Yield 0.5 4.6% 1.0 5.0% 1.5 5.4% 2.0 5.8% Assuming that the yields on the 0.5-year and 1-year bonds are their respective spot rates, compute the 1.5-year and spot rate. Don't write answer is decimals (i.e. if result is .04 write answer as 4)

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Years to maturity Yield

0.5 4.6%

1.0 5.0%

1.5 5.4%

2.0 5.8%

Assuming that the yields on the 0.5-year and 1-year bonds are their respective spot rates, compute the 1.5-year and spot rate. Don't write answer is decimals (i.e. if result is .04 write answer as 4)