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(1 point) A 6-month zero coupon bond with a face value of $300 is trading at $297.10. A 12-month zero coupon bond with a face
(1 point) A 6-month zero coupon bond with a face value of $300 is trading at $297.10. A 12-month zero coupon bond with a face value of $200 is trading at $195.48. An 18-month coupon bond, paying a semi-annual coupon of 3% (compounded semi-annually) on a face value of $1000, is trading at $1006.35. (a) What is the yield on the 6-month zero-coupon bond? Express your answer as a percent, to the nearest basis point. Yield = % compounded continuously (b) What is the yield on the 12-month zero-coupon bond? Express your answer as a percent, to the nearest basis point. Yield = % compounded continuously (c) What should the yield on an 18-month zero-coupon bond be? Express your answer as a percent, to the nearest basis point. Yield = % compounded continuously (1 point) A 6-month zero coupon bond with a face value of $300 is trading at $297.10. A 12-month zero coupon bond with a face value of $200 is trading at $195.48. An 18-month coupon bond, paying a semi-annual coupon of 3% (compounded semi-annually) on a face value of $1000, is trading at $1006.35. (a) What is the yield on the 6-month zero-coupon bond? Express your answer as a percent, to the nearest basis point. Yield = % compounded continuously (b) What is the yield on the 12-month zero-coupon bond? Express your answer as a percent, to the nearest basis point. Yield = % compounded continuously (c) What should the yield on an 18-month zero-coupon bond be? Express your answer as a percent, to the nearest basis point. Yield = % compounded continuously
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