On March 11, 20XX, the existing or current (spot) one-year, two-year, three-year, and four-year zero-coupon Treasury security rates were as follows: 1R1 = 4.75%, 1R2 = 4.95%, 1R3 = 5.25%, 1R4 = 5.65% Using the unbiased expectations theory, calculate the one-year forward rates on zero-coupon Treasury bonds for years two, three, and four as of March 11, 20XX.

A one year zero coupon treasury bond yields 4.83% and a two year zero coupon treasury yields 4.88%. What is the expected 1 year interest rate 1 year from now, assuming no-arbitrage pricing and no liquidity premium? Enter answer in percents to 2 decimal places. For example, enter 14.15 for 14.15%.

You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 5.424 6.183 Maturity: Month/Year May 32 May 35 May 41 Yield to maturity Asked Bid 103.4664 103.5392 104.5004 104.6461 +.4341 ?? ?? +.5457 Change Ask Yield. 6.079 +.3867 77 4.111 In the above table, find the Treasury bond that matures in May 2035. What is your yield to maturity if you buy this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. %

You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 6.052 6.143 Maturity Month/Year Bid Asked Change May 33 May 36 May 42 103.4560 103.5288 104.4900 104.6357 ?? ?? +.3248 Ask Yield 5.919 +.4245 +.5353 ?? 3.951 In the above table, find the Treasury bond that matures in May 2036. What is your yield to maturity if you buy this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Yield to maturity %

A recent listing for a Treasury bill gave an Asked Bank Discount Yield (d) of 1.30%. Its maturity was 80 days. a. What is the T-bill's coupon (bond) equivalent yield (y)?

The following information is to be used in the following two questions: Using the expectations hypothesis, You observe the following bonds trading in the market: . a 1-year zero priced at $925.00 • a two-year 10% coupon bond trading at a par value of $10,000 What is the one-year interest rate (expressed in %)?

You are given the following prices of zero coupon bonds per $1.00 of maturity value: Term in years 1 2 3 4 Zero-coupon bond prices 0.9852 0.9701 0.9546 0.9388 Determine the one-year forward rate for year 4 (ie, the one-year forward rate deferred for 3 years. a) 1.629% b) 1.526% c) 1.572% d) 1.729% e) 1.683%

A recent edition of The Wall Street Journal reported interest rates of 3.25 percent, 3.60 percent, 3.98 percent, and 4.25 percent for 3-, 4-, 5-, and 6-year Treasury security yields, respectively. According to the unbiased expectation theory of the term structure of interest rates, what are the expected 1-year forward rates for years 4, 5, and 6? Note: Do not round intermediate calculations. Round your percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34). Years 4 5 6 () Forward Rates % % %