Residual Yield ZC Price Last Maturity Last Chg 1M Chg 6M Last Chg 1M Chg 6M Change 1 month 2.326% -6.9 bp +219.6 bp 16 Mar 3 months 2.461% -17.0 bp +188.1 bp 16 Mar 6 months 2.667% -28.5 bp +217.2 bp 16 Mar 9 months 2.538% -44.9 bp +150.8 bp 16 Mar 1 year 2.532% -44.1 bp +135.2 bp 97.53 +0.43 % -1.32 % 16 Mar 2 years 2.499% -36.5 bp +97.5 bp 95.18 +0.71 % -1.90 % 16 Mar 3 years 2.301% -35.1 bp +84.7 bp 93.40 +1.03 % -2.46% 16 Mar 4 years 2.142% -40.1 bp +67.0 bp 91.87 +1.58% -2.60% 16 Mar 5 years 6 years 2.213% -32.0 bp 2.163% -28.4 bp +58.8 bp 89.63 +1.58 % -2.85% 16 Mar +54.7 bp 87.95 +1.68 % -3.17 % 16 Mar

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 15.1.1MBA
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Question
Residual
Yield
ZC Price
Last
Maturity
Last
Chg 1M
Chg 6M
Last
Chg 1M
Chg 6M Change
1 month 2.326%
-6.9 bp
+219.6 bp
16 Mar
3 months
2.461% -17.0 bp
+188.1 bp
16 Mar
6 months
9 months
2.667% -28.5 bp
+217.2 bp
16 Mar
2.538%
-44.9 bp
+150.8 bp
16 Mar
1 year
2 years
2.532% -44.1 bp
2.499% -36.5 bp
+135.2 bp
+97.5 bp
97.53
+0.43 %
-1.32%
16 Mar
95.18 +0.71 %
-1.90 %
16 Mar
3 years
2.301% -35.1 bp
+84.7 bp
93.40
+1.03 %
-2.46%
16 Mar
4 years
2.142% -40.1 bp
+67.0 bp
91.87 +1.58 %
-2.60%
16 Mar
5 years
6 years
2.213% -32.0 bp
2.163% -28.4 bp
+58.8 bp
+54.7 bp
89.63 +1.58 %
-2.85%
16 Mar
87.95 +1.68 %
-3.17%
16 Mar
Estimate AND explain in plain-English the 2-year forward rate 3 years from today. NOTE:
Plain English explanation means that you should not be using financial jargon such as "forward
rate"
Transcribed Image Text:Residual Yield ZC Price Last Maturity Last Chg 1M Chg 6M Last Chg 1M Chg 6M Change 1 month 2.326% -6.9 bp +219.6 bp 16 Mar 3 months 2.461% -17.0 bp +188.1 bp 16 Mar 6 months 9 months 2.667% -28.5 bp +217.2 bp 16 Mar 2.538% -44.9 bp +150.8 bp 16 Mar 1 year 2 years 2.532% -44.1 bp 2.499% -36.5 bp +135.2 bp +97.5 bp 97.53 +0.43 % -1.32% 16 Mar 95.18 +0.71 % -1.90 % 16 Mar 3 years 2.301% -35.1 bp +84.7 bp 93.40 +1.03 % -2.46% 16 Mar 4 years 2.142% -40.1 bp +67.0 bp 91.87 +1.58 % -2.60% 16 Mar 5 years 6 years 2.213% -32.0 bp 2.163% -28.4 bp +58.8 bp +54.7 bp 89.63 +1.58 % -2.85% 16 Mar 87.95 +1.68 % -3.17% 16 Mar Estimate AND explain in plain-English the 2-year forward rate 3 years from today. NOTE: Plain English explanation means that you should not be using financial jargon such as "forward rate"
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