Given the following UST yield curve (a par curve, i.e., for a coupon bond), what is...

    

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Given the following UST yield curve (a par curve, i.e., for a coupon bond), what is the value of a 2% coupon UST bond with 2 years to maturity? [The yields are in percent units, so "1" means 0.01. ]. State you answer as if the bond had a face value of $100. 1 Yr 2 Yr 3 Yr 5 Yr 7 Yr 0.41 0.83 1.1 1.43 1.62 3 Suppose that the price of the 2%, 2yr bond in the previous question was $101.975. a. What is the bond's yield to maturity? b Would you say that this price is consistent with the UST yield curve given in question 2? If not, would is the price too high or too low? Given the following UST yield curve (a par curve, i.e., for a coupon bond), what is the value of a 2% coupon UST bond with 2 years to maturity? [The yields are in percent units, so "1" means 0.01. ]. State you answer as if the bond had a face value of $100. 1 Yr 2 Yr 3 Yr 5 Yr 7 Yr 0.41 0.83 1.1 1.43 1.62 3 Suppose that the price of the 2%, 2yr bond in the previous question was $101.975. a. What is the bond's yield to maturity? b Would you say that this price is consistent with the UST yield curve given in question 2? If not, would is the price too high or too low?

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To calculate the value of a 2 coupon UST bond with 2 years to maturity we can use the fol... View the full answer