Using the Treasury yield information in part c, calculate the following rates using geometric averages (round your answers to three decimal places): 1. The 1-year rate, 1 year from now % 2. The 5-year rate, 5 years from now % 3. The 10-year rate, 10 years from now % 4. The 10-year rate, 20 years from now %

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
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Chapter4: Bond Valuation
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f. Using the Treasury yield information in part c, calculate the following rates using geometric averages (round your answers to three decimal places):
1. The 1-year rate, 1 year from now
%
2. The 5-year rate, 5 years from now
%
3. The 10-year rate, 10 years from now
%
4. The 10-year rate, 20 years from now
%
Transcribed Image Text:f. Using the Treasury yield information in part c, calculate the following rates using geometric averages (round your answers to three decimal places): 1. The 1-year rate, 1 year from now % 2. The 5-year rate, 5 years from now % 3. The 10-year rate, 10 years from now % 4. The 10-year rate, 20 years from now %
c. Given the following Treasury bond yield information, construct a graph of the yield curve.
Maturity
1 year
2 years
3 years
4 years
5 years
10 years
20 years
30 years
Yield
5.42%
5.52
5.70
5.74
5.69
5.79
6.40
5.97
Transcribed Image Text:c. Given the following Treasury bond yield information, construct a graph of the yield curve. Maturity 1 year 2 years 3 years 4 years 5 years 10 years 20 years 30 years Yield 5.42% 5.52 5.70 5.74 5.69 5.79 6.40 5.97
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