Question
A 3-year $100 par value bond offers a 10% coupon rate with interest paid annually. Assuming the 1-year spot rate is 8%, the 2-year spot
A 3-year $100 par value bond offers a 10% coupon rate with interest paid annually. Assuming the 1-year spot rate is 8%, the 2-year spot rate is 9% and the 3-year spot rate is 10%, what is the price of the bond?
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Principles of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter, Wajeeh Elali, Amer Al Roubaix
Arab World Edition
1408271583, 978-1408271582
