Question
Assume these bonds pay annual coupon with $100 par value Bond Maturity coupon Price Spot A 4 8% 100 B 4 7% 90 Compute the
Assume these bonds pay annual coupon with $100 par value
Bond | Maturity | coupon | Price | Spot |
A | 4 | 8% | 100 | |
B | 4 | 7% | 90 |
Compute the spot rate for A & B. Enter A's spot rate in first box and B's in the second one, in that order.
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