Question
Based on the following zero coupon yield curve, calculate the market value of a 3-year bond with a 0.5% coupon rate and a $1,000 par
Based on the following zero coupon yield curve, calculate the market value of a 3-year bond with a 0.5% coupon rate and a $1,000 par value. 1 Year Zero Coupon Rate: 0.75% 2 Year Zero Coupon Rate: 1.25% 3 Year Zero Coupon Rate: 1.35%
| A. | $1,034 | |
| B. | $975 | |
| C. | $1,019 | |
| D. | $990 | |
| E. | $1,004 |
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
8th Edition
0324259700, 978-0324259704
