Answered: a two-year, zero-coupon, risk-free…

a two-year, zero-coupon, risk-free bond? The price per $100 face value of the two-year, zero-coupon, risk-free bond is $ (Round to the nearest cent.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 5P: Default Risk Premium A Treasury bond that matures in 10 years has a yield of 6%. A 10-year corporate...

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Question

Data table
↑
The current zero-coupon yield curve for risk-free bonds is as follows: What is the price per $100face value of
a two-year, zero-coupon, risk-free bond?
The price per $100 face value of the two-year, zero-coupon, risk-free bond is $
(Click on the following icon in order to copy its contents into a spreadsheet.)
Maturity (years)
YTM
1
4.98%
2
5.48%
3
5.78%
Print
Done
4
5
5.96%
6.09%
(Round to the nearest cent.)
- X

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