The following is a list of prices for zero-coupon bonds of various maturities a.
ID: 2620397 • Letter: T
Question
The following is a list of prices for zero-coupon bonds of various maturities a. Calculate the yield to maturity for a bond with a maturity of 0 one year, ) two years (i) three years, (iv) four years. (Do not round intermediate calculetions. Round your answers to two decimal places.) Maturity (Years) Price of Bond S 970 90 $909.97 $844.62 S 77626 YTM b. Calculate the forward rate for (0 the second year. (0) the third year, Dil) the fourth year. (Do not round intermediate calculations. Round your answers to two decimal places.) Maturity (years) Price of Bond s 970.90 989.97 844.62 776.26 4.Explanation / Answer
Answer 1 using Financial calculator PMT 0 N= 1 PV= -970.9 FV= 1000 Press CPT and I/Y I/Y= 2.997% Answer 2 using Financial calculator PMT 0 N= 2 PV= -909.97 FV= 1000 Press CPT and I/Y I/Y= 4.83% Answer 3 using Financial calculator PMT 0 N= 3 PV= -844.62 FV= 1000 Press CPT and I/Y I/Y= 5.79% Answer 4 using Financial calculator PMT 0 N= 4 PV= -776.26 FV= 1000 Press CPT and I/Y I/Y= 6.536% as per chegg guideline for multiple question chegg expert need to answer first four question
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