Consider a bond that pays annual coupons of 7% on a face value of $100. The bond
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Consider a bond that pays annual coupons of 7% on a face value of $100. The bond has two years to maturity. If the ytm of the bond (expressed with annual compounding) is 6.80%, what is its current price? What is the bond’s ytm under continuous compounding?
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The price of the bond is just the cash flow...View the full answer
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