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3. Consider the following data on the prices of four bonds: Bond Principal($) Time to Maturity(Years) Annual Coupon($) Bond Price($) 100 0.50 0 92.0 100
3. Consider the following data on the prices of four bonds:
| Bond Principal($) | Time to Maturity(Years) | Annual Coupon($) | Bond Price($) |
| 100 | 0.50 | 0 | 92.0 |
| 100 | 1.00 | 0 | 91.0 |
| 100 | 1.50 | 3 | 99.0 |
| 100 | 2.00 | 6 | 104.0 |
*Half the stated coupon is assumed to be paid every six months:
Calculate two-year zero rate.
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The Oxford Handbook Of Entrepreneurial Finance
Authors: Douglas Cumming
1st Edition
0195391241, 978-0195391244
