Question
A 10-year zero-coupon bond with a face value of $5,000,000 has the current yield on the portfolio is 10% per annum. This bond matures 10
A 10-year zero-coupon bond with a face value of $5,000,000 has the current yield on the portfolio is 10% per annum. This bond matures 10 years from today.
What is the present value or the current price of this bond if the yield per annum is quoted as continuous compounding?
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Financial Risk Manager Handbook
Authors: Philippe Jorion, Global Association Of Risk Professionals
5th Edition
0470479612, 978-0470479612
