Question: Question W. There are four questions that use the same data. In all questions you are asked to price a bond and get its yield.

Question W. There are four questions that use the same data. In all questions you are asked to price a bond and get its yield. You are given the following market data for semi annual US treasuries. Semiannual Maturity 0.5 1.5 2.5 Bond B0.5 B1 B1.5 B2 B2.5 B3.5 B4 B4.5 B5 B5.5 B6 B6.5 B7 37.5 Price 100.75539 99.69953 98.82447 98.12242 97.58579 97.20716 96.97927 96.89506 96.94764 97.13031 97.43652 97.85993 98.39435 99.03379 99.77242 DATA coupon rate (% p.a.) 3.50% 3.70% 3.90% 4.10% 4.30% 4.50% 4.70% 4.90% 5.10% 5.30% 5.50% 5.70% 5.90% 6.10% 6.30% 75 a) Question Wone of four. Price a 7 year SEMI ANNUAL coupon bond with coupon rate of c = 7%, calculate its yield. O P = $96.6231; y= 10.1234% O P = $116.3239; y=6.3645% O P = $125.7788; y= 3.5115% None of the above OP= $105.3239; y=6.7715% Question W. There are four questions that use the same data. In all questions you are asked to price a bond and get its yield. You are given the following market data for semi annual US treasuries. Semiannual Maturity 0.5 1.5 2.5 Bond B0.5 B1 B1.5 B2 B2.5 B3.5 B4 B4.5 B5 B5.5 B6 B6.5 B7 37.5 Price 100.75539 99.69953 98.82447 98.12242 97.58579 97.20716 96.97927 96.89506 96.94764 97.13031 97.43652 97.85993 98.39435 99.03379 99.77242 DATA coupon rate (% p.a.) 3.50% 3.70% 3.90% 4.10% 4.30% 4.50% 4.70% 4.90% 5.10% 5.30% 5.50% 5.70% 5.90% 6.10% 6.30% 75 a) Question Wone of four. Price a 7 year SEMI ANNUAL coupon bond with coupon rate of c = 7%, calculate its yield. O P = $96.6231; y= 10.1234% O P = $116.3239; y=6.3645% O P = $125.7788; y= 3.5115% None of the above OP= $105.3239; y=6.7715%
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