36. Prices and spot interest rates (S3.3) Look one more time at Table 3.6. a. Suppose you...

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36. Prices and spot interest rates (S3.3) Look one more time at Table 3.6.

a. Suppose you knew the bond prices but not the spot interest rates. Explain how you would calculate the spot rates. (Hint: You have four unknown spot rates, so you need four equations.)

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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