Question

Please bootstrap the third-year treasury spot rate using the following treasury coupon bonds (annual coupon payments...

  1. Please bootstrap the third-year treasury spot rate using the following treasury coupon bonds (annual coupon payments with $1000 face value).

Maturity

Coupon

Yield

Price

1 year

3%

3%

$1000

2 years

4%

4%

$1000

3 years

5%

5%

$1000
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