Suppose you observe the following zero-coupon bond prices per $1 of maturity payment: 0.96154 (1-year), 0.91573 (2-year), 0.87630(3-year), 0.82270 (4-year), 0.77611 (5-year). What is the 5-year zero-coupon bond yield?

Question 2

Suppose you observe the following zero-coupon bond prices per $1 of maturity payment: 0.96154 (1-year), 0.91573 (2-year), 0.87630(3-year), 0.82270 (4-year), 0.77611 (5-year). What is the one-year implied forward rate for the first (1st) year (that is, Year 1)?

Question 3

Suppose you observe the following zero-coupon bond prices per $1 of maturity payment: 0.96154 (1-year), 0.91573 (2-year), 0.87630(3-year), 0.82270 (4-year), 0.77611 (5-year). What is the par coupon rate for the 1-year bond?

Question 4

Suppose you observe the following zero-coupon bond prices per $1 of maturity payment: 0.96154 (1-year), 0.91573 (2-year), 0.87630(3-year), 0.82270 (4-year), 0.77611 (5-year). What is the continuously compounded zero yield for the 1-year bond?

Question 5

Suppose the September Eurodollar futures contract has a price of 97.4. You plan to borrow $100,000,000 for 3 months in September at LIBOR, and you intend to use the Eurodollar contract to hedge your borrowing rate. What rate can you secure for your loan?