Question
1) you buy a 3 year bond with a coupon rate of 12% (annual pmts) and yield to maturity of 10%. The par value is
1) you buy a 3 year bond with a coupon rate of 12% (annual pmts) and yield to maturity of 10%. The par value is $1000. you hold the bond until maturity. Then the coupon is reinvested at 8%. What is the realized compound rate of return. (Please show step by step)
2) one year forward rate one year from now and two years from now.
| Time (t) | Forward rate |
| 1yr | 8% |
| 2 yr | 10% |
the yield on 1 year zero coupon bond today is 6%.
what is the price and yield of a 2 and 3 year zero coupon bonds today?
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Mastering Attribution In Finance
Authors: Andrew Colin
1st Edition
1292114029, 978-1292114026
