fintrea practice set # 4

2
Answers to Practice Set # 4 1 6-month spot rate 3% 1-year spot rate 4.01% 18-month spot rate 5.03% 2 12.80% 3 11.72% 4 7.30% 5 10% 6 A 7 1046.77 8 9.04% 9 D 10 Period Year Annnualized Spot R 1 0.5 4% 2 1.0 5% 3 1.5 5.4146% 4 2.0 5.8297% 5 2.5 6.4665% 6 3.0 7.1173% 11 102.7037 12 A 5.8008% B 6.6023% C 8.6041% D 8.1059% E 8.8100%

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Page 1: Fintrea Practice Set # 4

Answers to Practice Set # 4

1 6-month spot rate 3%1-year spot rate 4.01%18-month spot rate 5.03%

2 12.80%

3 11.72%

4 7.30%

5 10%

6 A

7 1046.77

8 9.04%

9 D

10 Period Year Annnualized Spot Rate1 0.5 4%2 1.0 5%3 1.5 5.4146%4 2.0 5.8297%5 2.5 6.4665%6 3.0 7.1173%

11 102.7037

12 A 5.8008%B 6.6023%C 8.6041%D 8.1059%E 8.8100%

Page 2: Fintrea Practice Set # 4

z12.30%2.50%

2.7073%2.9148%3.2333%3.5586%