Question
Bond A is a two year zero coupon bond with par value of $1000 and price of $950. Bond B is a three year 7%
Bond A is a two year zero coupon bond with par value of $1000 and price of $950. Bond B is a three year 7% coupon bond with par value of $1000 and price of $1000.
Show that a bond sells at par if and only if the coupon rate equals the yield.
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International Finance Putting Theory Into Practice
Authors: Piet Sercu
1st edition
069113667X, 978-0691136677
