BUS326Handout1Bootstrapping - BUS326 Handout Questions-1 Bootstrapping Determine the theoretical spot rates for the rst ve sixmonth periods given that

BUS326Handout1Bootstrapping - BUS326 Handout Questions-1...

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Unformatted text preview: BUS326 Handout Questions —-1 Bootstrapping Determine the theoretical spot rates for the first five six—month periods given that bonds with the following annual coupon rates and maturities, are trading at par (at their face value). Yield to Maturity / Spot Coupon Rate (%) Yield (%_n .a.) 525* 5.50““ Bom‘ammcwww * The 6~month and 12~month rates shown are for zerowcoupon (discount) instruments and the rate represents the yield to maturity. ...
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  • Summer '19
  • Finance, following annual coupon, theoretical spot rates, five six—month periods

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