Question: a 5 . question: What is the puce og ? 6 year bond ? Year 0.5 1 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0

a 5 . question: What is the puce og ? 6 year bond ? Year 0.5 1 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 YTM 5.25% 5.50% 5.75% 6.00% 6.25% 6.50% 6.75% 7.00% 7.25% 7.50% 7.75% 8.00% Spot rate (annual) 5.25% 5.50% 5.76% 6.02% 6.28% 6.55% 6.82% 7.10% 7.38% 7.67% 7.97% 8.27% Why? Answer 11 104 P6 - =100.01603 t=1 (1+r) (1.04135)12 4 Price year Bond

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