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  3. 5. you observe the yields of the following treasur

5. You observe the yields of the following Treasury securities at below (all yields are...

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5. You observe the yields of the following Treasury securities at below (all yields are shown on a bond-equivalent basis). All the securities maturing from 1.5 years on are selling at par The 0.5 and 1.0-year securities are zero-coupon instruments. Year (Period) Yield to Maturity spot Rate (%) ) 5.25 5.50 5.75 6.00 6.25 6.50 6.75 7.00 7.25 7.50 7.75 5.25 5.50 5.76 2 1.0 (2) 1.5 (3) 2.0 (4) 2.5 (5) 3.0 (6) 3.5 (7) 4.0 (8) 6.55 6.82 7.10 7.38 7.67 7.97 4.5 (9) 5.0 (10) 5.5 (11) Calculate the missing spot rates @period 4 and 5. what should the price of a 6% 55-year Treasury security be? 5. You observe the yields of the following Treasury securities at below (all yields are shown on a bond-equivalent basis). All the securities maturing from 1.5 years on are selling at par The 0.5 and 1.0-year securities are zero-coupon instruments. Year (Period) Yield to Maturity spot Rate (%) ) 5.25 5.50 5.75 6.00 6.25 6.50 6.75 7.00 7.25 7.50 7.75 5.25 5.50 5.76 2 1.0 (2) 1.5 (3) 2.0 (4) 2.5 (5) 3.0 (6) 3.5 (7) 4.0 (8) 6.55 6.82 7.10 7.38 7.67 7.97 4.5 (9) 5.0 (10) 5.5 (11) Calculate the missing spot rates @period 4 and 5. what should the price of a 6% 55-year Treasury security be

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