Question: Use the information in the table to compute 3-year zero rate r1 = .058 r2 = .061 Show all calculations to arrive at final solution

Use the information in the table to compute 3-year zero rate

r1 = .058

r2 = .061

Show all calculations to arrive at final solution

Coupon

maturity

Par

Price, $

1-year bond

0

1

100

94.51795841

2-year bond

0.06

2

100

99.83295243

3-year bond

0.068

3

100

100.8820773

4-year bond

0.07

4

100

100.8724043

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