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Consider the following yields (spot rate) on zero coupon bonds, today December 2017 Maturity (year) Yield 1 year (dec 2018)
Consider the following yields (spot rate) on zero coupon bonds, today December 2017
Maturity (year) Yield
1 year (dec 2018) 0.07
2 year (dec 2019) 0.010
1 what is the expected price of the one year, 0 coupon bond?
2 what is the expected yield of a 1-year security expected to be issued one year from December 2018?
3 what is the future price of a one year, 0 coupon bond that will be issued one year from December