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A 100 bond pays a 10 annual coupon for the next three years. What is the value of the bond given the following spot and
A 100 bond pays a 10 annual coupon for the next three years. What is the value of the bond given the following spot and forward interest rates?
| Year | Spot or forward rates |
| 1 Spot rate | 3% |
| 2 One year forward | 6% |
| 3 One year forward | 7% |
Use XXX.XX format. For example, the value is 79.85 or 104.16.
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Authors: Andrew P.C.
1st Edition
1071003925, 978-1071003923
