Question: Due: Mar 5 Please print out this file and write your answers below each question/problem. Report rates as percentages to four decimal places (i.e., a
Due: Mar 5 Please print out this file and write your answers below each question/problem. Report rates as percentages to four decimal places (i.e., a number like 6.4216%). You must show your work to receive full credit: provide additional pages if necessary 1. The cash prices of 6-month and 1-year Treasury bills are $98.00 and $95.00, respectively. A 1.5-year bond that pays coupons of $4 every 6 months sells for $102.00. A 2-year bond that pays coupons of $3 every 6 months sells for $99.00. i. Calculate the 6-month, 1-year, 1.5-year, and 2-year zero rates ii. Find the price and YTM of a 2-year 5% semi-annual coupon bond
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