Calculate the 2-year, 3-year and 4-year zero-coupon yields and discount factors consistent with the following bonds. The 1-year yield is 10.00%.
|
Maturity |
Coupon |
Price |
|
|
2 years |
9.0% |
(annual) |
97.70 |
|
3 years |
7.0% |
(annual) |
90.90 |
|
4 years |
11.0% |
(annual) |
99.40 |
What are the 1-year v 2-year, 2-year v 3-year and 3-year v 4-year forward-forward yields?