Question: 5. Given the term structure below, (a) calculate forward and par yields, (b) plot all three yield curves on one graph. n in ip ih

5. Given the term structure below, (a) calculate forward and par

5. Given the term structure below, (a) calculate forward and par yields, (b) plot all three yield curves on one graph. n in ip ih 1 2 3 4 5 6 7 8 9 10 11 3.50% 3.80% 4.20% 4.40% 4.60% 5.00% 5.30% 5.70% 6.10% 6.40% 6.80% 7.20% 12 ANS: e.g. for n=5, 4.56%, 5.40% Excel Solution Preferred 5. Given the term structure below, (a) calculate forward and par yields, (b) plot all three yield curves on one graph. n in ip ih 1 2 3 4 5 6 7 8 9 10 11 3.50% 3.80% 4.20% 4.40% 4.60% 5.00% 5.30% 5.70% 6.10% 6.40% 6.80% 7.20% 12 ANS: e.g. for n=5, 4.56%, 5.40% Excel Solution Preferred

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