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Assignment 3: 1. (Assuming continuous compounding) What is the price of the floating rate bond with the following characteristics: notional amount $1000, semi-annual coupon payments,
Assignment 3: 1. (Assuming continuous compounding) What is the price of the floating rate bond with the following characteristics: notional amount $1000, semi-annual coupon payments, the yield curve is flat at 1.75% per year and there are 2.75 years until maturity. There has been a parallel shift up in the yield curve of 0.25% over the last 3 months
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