Question: Problem 15-7 The following is a list of prices for zero-coupon bonds of various maturities. a. Calculate the yield to maturity for a bond with

 Problem 15-7 The following is a list of prices for zero-coupon

Problem 15-7 The following is a list of prices for zero-coupon bonds of various maturities. a. Calculate the yield to maturity for a bond with a maturity of (1) one year; (ii) two years; (iii) three years; (iv) four years. (Do not round intermediate calculations. Round your answers to two decimal places.) YTM Maturity (Years) Price of Bond 1 $ 940.90 2 $ 923.47 3 872.62 4 769.66 % % % b. Calculate the forward rate for (i) the second year; (ii) the third year; (ii) the fourth year. (Do not round intermediate calculations. Round your answers to two decimal places.) Maturity (years) 1 2 3 4 Price of Bond $ 940.90 923.47 872.62 769.66 Maturity (Years) Price of Bond 2 $ 923.47 $ 872.62 4 $ 769.66 Forward Rate % % 3 %

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