A one-year Treasury bill has a yield of 6%. A bond will pay $70 at the end of year 1 and $1,070 at the end of year 2. If its market value is $1,036.50, the two-year spot rate is

Question

A one-year Treasury bill has a yield of 6%. A bond will pay $70 at the end of year 1 and $1,070 at the end of year 2.	If its market value is $1,036.50, the two-year spot rate is

Quizplus · Accepted Answer

The Answer of A one-year Treasury bill has a yield of 6%. A bond will pay $70 at the end of year 1 and $1,070 at the end of year 2.	If its market value is $1,036.50, the two-year spot rate is

A One-Year Treasury Bill Has a Yield of 6