Use the following list of Treasury bond prices as of March 15, 2013 to derive (bootstrap) discount factors for 6 months, 1 year, 18 months, and 2 years:
Maturity Coupon Price
9/15/2013 4.750% 102-077
3/15/2014 4.125% 103-21
9/15/2014 5.000% 106-102
3/15/2015 5.000% 107-276
2. A 10-year bond pays 12 interest on a $1000 face value annually. If it currently sells for $1,190, what is its approximate yield to maturity?
11.64 10.14 10.64 12.14