Question: Questions 8 & 9 please. Question 5 1 pts From the Treasury strip yield curve, the current required yields on one- and two-year Treasuries are
Questions 8 & 9 please.


Question 5 1 pts From the Treasury strip yield curve, the current required yields on one- and two-year Treasuries are i = 4.65 percent and i2 = 5.50 percent, respectively. Further, the current yield curve indicates that appropriate one-year discount bonds are yielding k = 8.5 percent, and two-year bonds are yielding k = 10.25 percent. (1) Calculate the one-year forward rate on the Treasuries. Convert your answer to percentage format. Enter your answer rounded to 2 decimals, and without any units. So, for example, if your answer is 3.4568%, then just enter 3.46. Question 8 Assume the same information as in the previous question . (4) Using the current and forward one-year rates, calculate the marginal probability of on the corporate bond in year 2. 1 pts repayment Note: Round your probability information to four decimal places. So, for example, if your answer is 0.83459, then just enter 0.8346 Question 9 Assume the same information as in the previous question . (5) Calculate the cumulative probability of default on the corporate bond over the next two years. Note: Round your probability information to four decimal places. So, for example, if your answer is 0.83459, then just enter 0.8346 1 pts
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