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2. A corporate bond offers a 4% coupon rate and has exactly 3 years remaining to maturity. Interest is paid annually. The following rates are
| 2. A corporate bond offers a 4% coupon rate and has exactly 3 years remaining to maturity. Interest is paid annually. The following rates are from the benchmark spot curve. | ||||||||
| Time to maturity | Spot Rate | |||||||
| 1 Year | 4.20% | |||||||
| 2 Years | 4.40% | |||||||
| 3 Years | 4.55% | |||||||
| The bond has a Z spread of 180 basis points | ||||||||
| What is the value of the bond today? Assume par is 100 | ||||||||
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Mergers Acquisitions And Other Restructuring Activities
Authors: Donald DePamphilis
9th Edition
0128016094, 978-0128016091
