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Assume par=100 Time in Years Time in Periods Coupon Rate YTM 0.5 1 0.00% 6.00% 1 2 0.00% 6.25% 1.5 3 6.00% 6.50% 2 4
Assume par=100
| Time in Years | Time in Periods | Coupon Rate | YTM |
| 0.5 | 1 | 0.00% | 6.00% |
| 1 | 2 | 0.00% | 6.25% |
| 1.5 | 3 | 6.00% | 6.50% |
| 2 | 4 | 6.25% | 6.75% |
| 2.5 | 5 | 6.50% | 7.00% |
| 3 | 6 | 6.75% | 7.25% |
| 3.5 | 7 | 7.00% | 7.50% |
| 4 | 8 | 7.50% | 7.75% |
| 4.5 | 9 | 7.75% | 8.00% |
| 5 | 10 | 8.00% | 8.25% |
| 5.5 | 11 | 8.25% | 8.50% |
| 6 | 12 | 10.00% | 8.75% |
| 6.5 | 13 | 10.25% | 9.00% |
| 7 | 14 | 10.50% | 9.25% |
| 7.5 | 15 | 10.75% | 9.50% |
| 8 | 16 | 11.00% | 9.75% |
1. Calculate the prices for all the bonds.
2. Calculate the spot rates, discount factors, and forward rates for the curve. State these rates both on a semi-annual and a BEY basis.
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Fundamentals Of Entrepreneurial Finance
Authors: Marco Da Rin, Thomas Hellmann
8th Edition
0199744750, 9780199744756
