Chapter 13 - The Term Structure of Interest Rates
212 In section 13.3.1 the final sentence should read:
The 7.9% yield over three months is a direct observation.
213 In the final set of three equations the first shows the exponent as 1.5 but the .5 is not properly superscripted; the .5 should be up with the 1 as the superscript to (1 + Yd/2)
( 1 +Yd)1.5
218 Question 13-3
Both Bonds should be Hypothetical Resources Bonds rather than Treasury bonds. The yield curve being built is a corporate bond yield curve. For this purpose assume Hypothetical resources is rated AAA.