Use the February 15, 2021U.S. Treasury quotes from TreasuryDirect shown below to calculate the spot rate for each date given in the table. 1. Use the February 15, 2021 U.S. Treasury quotes from TreasuryDirect shown below tocalculate the spot rate for each date given in the table.Maturity CouponPrice Discount Factor Spot Rate8/15/212/15/228/15/222/15/238/15/232/15/248/15/242/15/258/15/252/15/262.750 101.343752.000 101.906251.625102.251.375102.52.500 105.906252.750107.68752.375107.43752.000106.68752.000107.18751.625 105.65625tCoupon and spot rate in %/year, price as percent of par.

Spot rate: It is the price for immediate settlement of a contract.

1. Use the February 15, 2021 U.S. Treasury quotes from TreasuryDirect shown below to calculate the spot rate for each date given in the table. Maturity Coupont Price Discount Factor Spot Rate 8/15/21 2/15/22 8/15/22 2/15/23 8/15/23 2/15/24 8/15/24 2/15/25 8/15/25 2/15/26 2.750 101.34375 2.000 101.90625 1.625 102.25 1.375 102.5 2.500 105.90625 2.750 107.6875 2.375 107.4375 2.000 106.6875 2.000 107.1875 1.625 105.65625 tCoupon and spot rate in %/year, price as percent of par.

1. Use the February 15, 2021 U.S. Treasury quotes from TreasuryDirect shown below to calculate the spot rate for each date given in the table. Maturity Coupont Price Discount Factor Spot Rate 8/15/21 2/15/22 8/15/22 2/15/23 8/15/23 2/15/24 8/15/24 2/15/25 8/15/25 2/15/26 2.750 101.34375 2.000 101.90625 1.625 102.25 1.375 102.5 2.500 105.90625 2.750 107.6875 2.375 107.4375 2.000 106.6875 2.000 107.1875 1.625 105.65625 tCoupon and spot rate in %/year, price as percent of par.

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter7: Types And Costs Of Financial Capital

Section: Chapter Questions

Problem 2EP

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