Question
A 5-year zero coupon bond pays 10% annual coupons, and has a face value of $1,000. Zero coupon bonds with 1-5 years to maturity, each
A 5-year zero coupon bond pays 10% annual coupons, and has a face value of $1,000. Zero coupon bonds with 1-5 years to maturity, each with a face value of $100, have the following prices:
Price of 1-year zero = $99.14
Price of 2-year zero = $97.88
Price of 3-year zero = $96.32
Price of 4-year zero = $89.44
Price of 5-year zero = $87.76
What is the price of the 5-year coupon bond?
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Financial Performance
Authors: Marc Bertoneche, Rory Knight
1st Edition
0750640111, 978-0750640114
