The following table contains data to calculate forward rates using pure expectations theory. a) Find the yield on a 8 year bond, 2 years forward (2rs). b) Find the yield on a 6 year bond, 3 years forward (3r6). Maturity Yield 1 year 2.00% 2 years 3 years 4 years 5 years 6 year 7 years 8 years 9 years 10 years 2.20% 3.40% 4.50% 5.00% 5.00% 5.20% 5.40% 5.50% 5.50%
The following table contains data to calculate forward rates using pure expectations theory. a) Find the yield on a 8 year bond, 2 years forward (2rs). b) Find the yield on a 6 year bond, 3 years forward (3r6). Maturity Yield 1 year 2.00% 2 years 3 years 4 years 5 years 6 year 7 years 8 years 9 years 10 years 2.20% 3.40% 4.50% 5.00% 5.00% 5.20% 5.40% 5.50% 5.50%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Please do it in excel and show the formuls
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