Kiwi8245 Kiwi8245

27-02-2024
Mathematics

contestada

The six-month and one-year zero rates are both 5% per annum. For a bond that has a life of 18 months and pays a coupon of 4% per annum (with semiannual payments and one having just been made), the yield is 5.2% per annum. What is the bond’s price?

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