Question: A zero-coupon treasury bond maturing on year 0.5 has a yield to maturity of 5.25% (semi-annual compounding). What is the discount factor for year 0.5?

A zero-coupon treasury bond maturing on year 0.5 has a yield to maturity of 5.25% (semi-annual compounding). What is the discount factor for year 0.5? What is the spot rate on year 0.5 based on annual compounding?

What is the spot rate on year 0.5 based on semi-annual compounding?

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To find the discount factor for year 05 we can use the formula Discount Factor 1 1 Spot Raten where ... View full answer

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