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Below is an example of how bond prices are quoted in a financial journal March 2 4.25pc Cash Rate Domestic Rates 90 day dealers

Below is an example of how bond prices are quoted in a financial journal March 2 4.25pc Cash Rate Domestic

Below is an example of how bond prices are quoted in a financial journal March 2 4.25pc Cash Rate Domestic Rates 90 day dealers bill rate 180 day dealers bill rate 5 year Coupon-paying Bond Yield 10 year Coupon-paying Bond Yield 4.44pc 4.31pc 3.11pc 3.64pc i. What are the theoretical prices of the 90 day dealers bill, 180 day dealers bill, 5 year coupon-paying Bond and 10 year coupon paying Bond, assuming the coupon rate is 6% p.a. for bonds. ii. Describe the differences between a discount security and a coupon paying bond.

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