Question: Hello everybody, can someone help me with this question. A 3-year treasury bond has a face value of $1000 and annual coupon of 8%. The

Hello everybody,

can someone help me with this question.

A 3-year treasury bond has a face value of $1000 and annual coupon of 8%. The 1-year spot rate is r1 = 2%, and the 1-year forward rates for the next two years are r2 = 4% and r3 = 5%.

a) Calculate the YTM of the t-bond

c)Calculatethe2-andthe3-yearspotinterestrates

Thank you so much in advanceeeee!

Best regards, Sarah

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