Question
2. Given the following treasury bonds, calculate the 18-month zero rate. Assume face value of each bond is 100 and coupons are paid semi-annually. Bond
2. Given the following treasury bonds, calculate the 18-month zero rate. Assume face value of each bond is 100 and coupons are paid semi-annually.
| Bond | Yrs to Maturity | Annual coupon rate% | Bond price |
| A | 0.5 | 0 | 98 |
| B | 1 | 8 | 98 |
| C | 1.5 | 9 | 104 |
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Essentials Of Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus
11th Edition
1260288390, 978-1260288391
