Maturity Interest Rate
1st yr 6.0%
2nd yr 6.25%
3rd yr 6.5%
4th yr 7.0%
Using the term structure of interest rates in the table above to solve the following problem. A bond pays $100 in years 1, 2, 3 and $1,100 in year 4. What is the price of the bond today? What is the YTM?