Question: How do you find this using a financial calculator? Thanks! 30) YIELD CURVE FOR ZERO COUPON BONDS RATED AA Maturity 1 2 3 4 5
How do you find this using a financial calculator? Thanks!
30) YIELD CURVE FOR ZERO COUPON BONDS RATED AA Maturity 1 2 3 4 5 6 year year year year year year YTM 8.00% 8.11% 8.20% 8.50% 8.75% 8.85% Maturity 7year 8year 9year 1 Oyear 1 lyear 12year YTM 9.15% 9.25% 9.35% 9.47% 9.52% 9.77% Maturity 13year 14year 15year 16year 17year 18year YTM 10.45 % 10.65 % 10.75 % 10.95 % 11.00 % 11.25 % Assume that there are no liquidity premiums. To the nearest basis point, what is the expected interest rate on a four-year maturity AA zero coupon bond purchased six years from today? A) 10.41 percent B) 10.05 percent C) 9.16 percent D) 10.56 percent E) 9.96 percent
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