The following table gives the prices of Treasury Bonds. What is the zero-rate (continuously compounded) for 1.5 years?
(enter percentage in decimal form to four decimal places, i.e. eleven and a half percent would be entered as 0.1150)
.
The following table gives the prices of Treasury Bonds- What is the ze.docx
1. The following table gives the prices of Treasury Bonds. What is the zero-rate (continuously
compounded) for 1.5 years?
(enter percentage in decimal form to four decimal places, i.e. eleven and a half percent would be
entered as 0.1150)
Bond Principal
($)
Time to Maturity
(years)
Annual Coupon
($)
Bond Price
($)
100 0.5 0 97.6
100 1.0 0 94.3
100 1.5 6.7 100.6