In: Finance
Consider the following US treasury rate table expressed in percentage.
Maturity t |
Yield R(0,t) |
Yesterday | Last Week | Last Month |
6 Month | 0.02 | 0.02 | 0.02 | 0.09 |
1 Year | 0.23 | 0.23 | 0.22 | 0.23 |
2 Year | 0.73 | 0.7 | 0.71 | 0.71 |
3 Year | 1.04 | 1.03 | 0.99 | 1.07 |
5 Year | 1.51 | 1.51 | 1.47 | 1.59 |
10 Year | 2.18 | 2.19 | 2.13 | 2.2 |
30 Year | 2.95 | 2.95 | 2.89 | 2.84 |
What is the the yield to maturity of a 2 year 5% bond with annual payments? (Hint: Use the General Formula to find the price first, then compute the yield to maturity)
.4837 |
|
.7182 |
|
.2323 |
|
.7321 |