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You own a portfolio of Treasury bonds that has a market value of $88,096.90 today. This portfolio contains 63 zero coupon bonds, each with a face value of $1000, that mature in exactly one year. The portfolio also contains 28 zero coupon bonds ($1000 face value each) that mature in exactly two years. The yield to maturity on the one-year bonds is 3%. What is the yield to maturity on the two-year bonds?

You own a portfolio of Treasury bonds that has a market value of $88,096.90
today. This portfolio contains 63 zero coupon bonds, each with a face value of $1000, that mature in exactly one year. The portfolio also contains 28 zero coupon bonds ($1000 face value each) that mature in exactly two years. The yield to maturity on the one-year bonds is 3%. What is the yield to maturity on the two-year bonds?
 
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The post You own a portfolio of Treasury bonds that has a market value of $88,096.90 today. This portfolio contains 63 zero coupon bonds, each with a face value of $1000, that mature in exactly one year. The portfolio also contains 28 zero coupon bonds ($1000 face value each) that mature in exactly two years. The yield to maturity on the one-year bonds is 3%. What is the yield to maturity on the two-year bonds? appeared first on Superb Professors.

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