Question
Assume that interest rates cannot be negative. If the yield on 4 year zero coupon government bond is 5.10 pa, then the yield on 3
Assume that interest rates cannot be negative. If the yield on 4 year zero coupon government bond is 5.10 pa, then the yield on 3 year zero coupon government bond cannot be larger than -------------?
a. 5.05%
b. 5.10%
c. 6.86%
d. 5.95%
please show calculation (not excel)
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Fundamentals Of Futures And Options Markets
Authors: John C. Hull
7th Edition
0136103227, 9780136103226
