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Consider a the par yield curve for the U.S. Treasury securities given in the table...

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Accounting

Consider a the par yield curve for the U.S. Treasury securities given in the table below (only the first 3 years of the curve are provided). Calculate the missing spot rates indicated by ???? using bootstrapping and add them to the table. . (The example of bootstrapping given in the Chapter 10 slides will be very helpful in completing this table.) Show your work for all calculations in the space below the table

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Yield to Maturity ( Year Spot Rate (%) 0.5 5.25 5.25 1.0 5.50 5.50 1.5 5.75 ???? 2.0 6.00 ???? ???? 2.5 6.25 ???? 3.0 6.50 Yield to Maturity ( Year Spot Rate (%) 0.5 5.25 5.25 1.0 5.50 5.50 1.5 5.75 ???? 2.0 6.00 ???? ???? 2.5 6.25 ???? 3.0 6.50

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