Consider two 5-year bonds; one has a $9 %$ coupon and sells for 101.00 ; the other
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Consider two 5-year bonds; one has a $9 %$ coupon and sells for 101.00 ; the other has a $7 %$ coupon and sells for 93.20 . Find the price of a 5-year zero-coupon bond.
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To find the price of a 5year zerocoupon bond we can use the concept of arbitrage Assuming th...View the full answer
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