Question: Use excel and the one through ten year zero coupon bond rates provided in the table below to answer the following questions. Zero Coupon Bond

Use excel and the one through ten year zero coupon bond rates provided in the table below to answer the following questions.

Zero Coupon Bond Rates

Years to Maturity

Rate

1

2.80%

2

2.90%

3

3.00%

4

3.10%

5

3.20%

6

3.30%

7

3.40%

8

3.50%

9

3.60%

10

3.70%

All of the questions refer to a ten-year 3.700% coupon rate bond that makes annual payments with a $100 par value.

Part One.

What is the bonds fair market price and yield to maturity at the fair market price?

Ten Year 3.700% Coupon Rate Bond

Fair Market Price

Yield to Maturity at Fair Market Price

?

?

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