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11. (a) Calculate the price of a five year fixed interest security redeemable at 105 % with 8% annual coupons given the following information: Yi
11. (a) Calculate the price of a five year fixed interest security redeemable at 105 % with 8% annual coupons given the following information: Yi = Y2 = $2,1 = F3,1 = $2.3 = 9% 8% 6% 5% 0%. (b) The prices of zero coupon bonds for various terms are as follows: 6 years = 70% 12 years =50% 18 years = 20%. Calculate Y12 and F12,6
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