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A bond with exactly 2 years until maturity has a coupon rate of 6% and makes coupon payments annually. The benchmark spot rate curve is
A bond with exactly 2 years until maturity has a coupon rate of 6% and makes coupon payments annually. The benchmark spot rate curve is given by:
Maturity Spot Rate 1 year 8.50%
2 years 9.25%
If the appropriate Z-spread is 25 bps, the value of the bond per 100 of par is closest to:
A) 94.34.
B)93.92.
C)111.46.
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