Assume that the yield curve is as given below. Assume semi-annual compounding. a- Calculate the...
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Finance
Assume that the yield curve is as given below. Assume semi-annual compounding.
a- Calculate the 6-month par yield . Write your answer as a decimal with six digits after the decimal point (e.g. 3.1875% is to be entered as 0.031875)
b- Calculate the 1-year par yield . Write your answer as a decimal with six digits after the decimal point (e.g. 3.1875% is to be entered as 0.031875)
c- Calculate the 1.5-year par yield . Write your answer as a decimal with six digits after the decimal point (e.g. 3.1875% is to be entered as 0.031875)
d- Calculate the 2-year par yield . Write your answer as a decimal with six digits after the decimal point (e.g. 3.1875% is to be entered as 0.031875)
T (in years)
r(T)
0.50
0.047502
1.00
0.050016
1.50
0.052508
2.00
0.054751
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