Question

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 (i) 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 $ 980.90 $ 914.97 843.12 $ 771.76 1.95 % 4.54% 5.85 % 6.69 %

Answer 1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

BOND- Microsoft Excel (Product Activation Failed) Review File Home Insert Page Layout Formulas Data View Add-Ins Σ AutoSum - Cut A A Wrap Text Calibri 11 General Copy Fill Merge & Center Insert Delete Format Paste B I U A +.0 .00 .00 0 Conditional Format Cell Sort & Find & % Format Painter Clear Filter Select Formatting as Table Styles Clipboard Number Styles Editing Font Alignment Cells fox IF207 ID IE IF IG IH IK IL IM IN 10 IP IQ IR 195 196 197 198 PRICE answer 1 answer 2 OF BOND FORWARD RATES 199 MATURITY ΥTM 1.95% (1000/IF200) -1 4.54% ((1000/IF201)^(1/2)) -1 5.85% ((1000/IF202)^(1/3))-1 6.69% ((1000/IF203)^(1/4)) -1 200 1 980.9 7.21% ((1+IH201)^2/(1+IH200)^1)-1 8.52% ((1+IH202)^3/(1+IH201)^2)- 1 9.25% ((1+IH203)^4/(1+I H202)^3)- 1 201 2 914.97 843.12 202 3 203 4 771.76 204 205 206 207 208 209 210 211 212 213 214 215 Sheet2 S6 AFN S4 S10 BIDDING, UNDERWRITING YIELD SPOT BANKING NOTE S1 S3 CLEAN PRICE EUAC AW LIFE LP, IP, MRP, INFLATION WARRANT refund S5 (-. Rea erences 120% WA 06:44 ENG 27-11-2019