You own a portfolio of Treasury bonds that has a market value of $88,096.90 today.  This portfolio contains 63 zero coupon bonds, each with a face value of $1000, that mature in exactly one year.  The portfolio also contains 28 zero coupon bonds ($1000 face value each) that mature in exactly two years.  The yield to maturity on the one year bonds is 3%.  

What is the yield to maturity on the 2-year bonds?

Answer rating: 100% (QA)

ANSWER To calculate the yield to maturity on the 2year bonds in the portfolio we first need to deter... View the full answer