do not round answer please The currentzero-coupon yield curve for risk free bonds is as follows:...

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do not round answer please
The currentzero-coupon yield curve for risk free bonds is as follows: Maturity years) What is the price per $100 face value o

The currentzero-coupon yield curve for risk free bonds is as follows: Maturity years) What is the price per $100 face value o

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Answer 1

Answer #1

Calculate price of zero coupon bond as follows:

Price = Face value / (1+ YTM)

Price =$100/((1+5.03%)*(1+5.46%))

Price = $100*0.9028

Price = $90.28

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Answer 2

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