Price a seven-year zero coupon bond with face value $1m at a market yield of 8% p.a.

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Price a seven-year zero coupon bond with face value $1m at a market yield of 8% p.a. Assume semi-annual compounding. Price the same bond at a market yield of 7% p.a. and compare its sensitivity with that of the bonds of Question 6.

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Financial Modeling For Managers With Excel Applications

ISBN: 9780970333315

2nd Edition

Authors: Dawn E. Lorimer, Charles R. Rayhorn

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Question Posted: Jun 13, 2024 02:00 AM

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Price a seven-year zero coupon bond with face value $1m at a market yield of 8% p.a.

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Financial Modeling For Managers With Excel Applications

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