Two 10-year 100 face value bonds, each redeemable at par, have 8% and 10% semiannual coupons and
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Two 10-year 100 face value bonds, each redeemable at par, have 8% and 10% semiannual coupons and are priced at^i and A2, respectively, to give the same yield. Prove that the price of a 10-year 1 00 face value bond, with a redemption value of 1 1 and 9% semiannual coupons, is, at the same yield rate, equal to ^1 + .\0A2.
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Theory Of Interest And Life Contingencies With Pension Applications A Problem Solving Approach
ISBN: 978-1566983334
3rd Edition
Authors: Asa Michael M. Parmenter, Ph.d.
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