Question: Q2. Based on below table, TABLE 1.1 Selected Treasury Bond Prices for Settlement on February 15, 2001 Coupon Maturity Price 7.875% 8/15/01 101-1214 14.250% 2/15/02

Q2. Based on below table, TABLE 1.1 Selected Treasury Bond Prices

Q2. Based on below table, TABLE 1.1 Selected Treasury Bond Prices for Settlement on February 15, 2001 Coupon Maturity Price 7.875% 8/15/01 101-1214 14.250% 2/15/02 108-31+ 6.375% 8/15/02 102-5 6.250% 2/15/03 102-18/8 5.250% 8/15/03 100-27 a. Find the prices of those bonds in decimal. (refer to ppt #11 in LN04 for the special bond quotations, and info slides if you are interested.) b. Find the discount factors for years 0.5 to 2.5. (ppt #4-6 in LN02) c. Find the spot rate with maturities from year 0.5 to 2.5. (ppt #10 in LN02) d. Find the six-month forward rate from now to year 2.5. (ppt #14 in LN02) e. Find the yield-to-maturity of those bonds using excel or CFA calculator. Show the inputs to the function. (ppt #17&18 in LN02) Q2. Based on below table, TABLE 1.1 Selected Treasury Bond Prices for Settlement on February 15, 2001 Coupon Maturity Price 7.875% 8/15/01 101-1214 14.250% 2/15/02 108-31+ 6.375% 8/15/02 102-5 6.250% 2/15/03 102-18/8 5.250% 8/15/03 100-27 a. Find the prices of those bonds in decimal. (refer to ppt #11 in LN04 for the special bond quotations, and info slides if you are interested.) b. Find the discount factors for years 0.5 to 2.5. (ppt #4-6 in LN02) c. Find the spot rate with maturities from year 0.5 to 2.5. (ppt #10 in LN02) d. Find the six-month forward rate from now to year 2.5. (ppt #14 in LN02) e. Find the yield-to-maturity of those bonds using excel or CFA calculator. Show the inputs to the function. (ppt #17&18 in LN02)

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