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The following is a list of prices for zero-coupon bonds of various maturities. a. Calculate...

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Accounting

The following is a list of prices for zero-coupon bonds of various maturities. a. Calculate the yield to maturity for a bond with a maturity of (i) one year; (ii) two years; (iii) three years; (iv) four years. Assume annual coupon payments. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

b. Calculate the forward rate for (i) the second year; (ii) the third year; (iii) the fourth year. Assume annual coupon payments. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Maturity (years) Price of Bond
1 $ 953.40
2 903.47
3 852.62
4 787.66

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