Question: Using the spot rates below, find the price of a two-years to maturity risky bond that pays 2% annual coupon and has a z-spread

Using the spot rates below, find the price of a two-years to

Using the spot rates below, find the price of a two-years to maturity risky bond that pays 2% annual coupon and has a z-spread of 30 bps (assuming a face value of $100 and annual convention). Spot Curve Year YTM 0.50% 3.00% 4 3.10% Selected Answer: O D. $99.73 Answers: A $98.73 B. $100.73 C. $97.73 D. $99.73

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