Consider the following US treasury rate table expressed in percentage. Maturity t Yield R(0,t) Yesterday Last...

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

Solutions

Expert Solution

jeff jeffy answered 11 months ago

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