Question: will thumbs up answer Problem 3.3. A 2-year T-note was issued 9 months ago with a face value of $1000. It pays a 5% per
Problem 3.3. A 2-year T-note was issued 9 months ago with a face value of $1000. It pays a 5% per annum coupon, paid semiannually. Suppose that the 3-month zero rate is 6%; the 9-month zero rate is 6.1%; the 15-month zero rate is 6.2%; and the 21-month zero rate is 6.3%, where all of these rates are per annum with continuous compounding. What is the price for the bond today? What is the zero rate implied by a zero coupon bond that has a face value of $1000 that comes due in 4 months and that trades at $992? Problem 3.4. What is the zero rate implied by a zero coupon bond that has a face value of $1000 that comes due in 7 months and that trades at $983? Problem 3.5. Calculate the forward rate between 4 months from now and 7 months from now, based on the zero rates of the previous two problems
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