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24a) You see the following Treasury Bill and Treasury Note rates in WSJ on 2/10/2020 a. Calculate the 2-year and 3-year spot rates b. Graph the yield curve up to 3-years c. Calculate the forward interest rates for the 6 month and the second year. Coupon Yield to Maturity Bond 1m Treasury bill 0 0.09% 3m Treasury bill 0 0.094% 0 0.1% 6m Treasury bill 0 1% 1y Treasury bill 2y Treasury Note 1 2.5% 3 2.9% 3y Treasury Note b) Assuming that the risk-free zero rates are calculated annually with continuous compounding from the above table. Calculate the price of a 2-year bond with face value of 1000, that pays 10% coupon semi- annually Focus 24a) You see the following Treasury Bill and Treasury Note rates in WSJ on 2/10/2020 a. Calculate the 2-year and 3-year spot rates b. Graph the yield curve up to 3-years c. Calculate the forward interest rates for the 6 month and the second year. Coupon Yield to Maturity Bond 1m Treasury bill 0 0.09% 3m Treasury bill 0 0.094% 0 0.1% 6m Treasury bill 0 1% 1y Treasury bill 2y Treasury Note 1 2.5% 3 2.9% 3y Treasury Note b) Assuming that the risk-free zero rates are calculated annually with continuous compounding from the above table. Calculate the price of a 2-year bond with face value of 1000, that pays 10% coupon semi- annually Focus

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