Compute the zero-coupon spot curve rates

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Reference no: EM132043035

Problem

Using the data from the par curve below, compute the zero-coupon spot curve rates (BEY). You may use the matrix algebra function that I showed you but you need to be able to understand the algebra behind the calculation as shown in the text. Round % to 4 decimal places.

Period	Years	Par Yield (BEY)	Spot Yield (BEY)
1	.5		2.0000%
2	1.0	2.10%
3	1.5	2.25%
4	2.0	2.45%
5	2.5	2.60%
6	3.0	2.65%

Reference no: EM132043035

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