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You are interested in valuing a 2-year semi-annual corporate coupon bond using spot rates but there are no liquid strips available. However, you do find
You are interested in valuing a 2-year semi-annual corporate coupon bond using spot rates but there are no liquid strips available. However, you do find the following 4 comparable semi-annual bonds (below) maturing over the next 2 years. What is the 6 -month spot rate? Time remaining to maturity Coupon Bond price 1.000% 1.010% 2.000% 2.020% 2.030%
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