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In: Finance

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

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