Suppose you observe the following (zero-coupon) yield curve.
Calculate the discout curve (i.e. calculate the discount factors Z(T) using the formula from class). Assume semi-annual compounding.
Hint: In class, we had to following formula for calculating discount factors Z(T) from zero-coupon rates r(T) in the case of semi-annual compounding
Calculate the discout curve (i.e. calculate the discount factors using the formula from class). Assume semi-annual compounding. Round to six digits after the decimal (e.g. 0.987654).
1) 0.5 years=?
2)1.0 years=?
3)1.5 years=?
4) 2.0 years=?
5)2.5 years=?
6) 3.0 years=?
this question is related to zero coupan bond .
Get Answers For Free
Most questions answered within 1 hours.