Calculate the followings

Bond quote
Face value ($)	Time to maturity (years)	Annual coupon payments (paid semi-annually)	bond price ($)	zero rate
100	0.5	0	98	4.0405%
100	1	0	97	?
100	1.5	15	115	?
100	2	20	?	5.500%

Using the Table above,

1- find the appropriate zero rates for1 year

2- find the appropriate zero rates for 1.5 year

3- find the 2-year bond price

4- find the par-yield for the 2-year-maturity bond

Answer rating: 100% (QA)

To find the appropriate zero rate for 1 year we can use the data for the second row of the table Face value 100 Time to maturity 1 year Annual coupon ... View the full answer