Reference no: EM133071928
Given the following yield information on municipal bonds issued by the state of North Dakota:
1-year note yield = 2.35%
2-year note yield = 2.75%
3-year note yield = 3.29%
4-year note yield = 3.95%
5-year note yield = 4.33%
Given constant premiums of 0, .16%, .21%, .24%, .26%, and .265%.
a) Calculate the expected expectations yields for a (3,2) path.
b) Calculate the expected market yields for a (1,4) path.
c) Determine the expected preferred habitat yield for a 3-year note purchased at the beginning of year 2.
d) Determine the expected expectations yield on a 5-year note purchased today.
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