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Bond Face Value Coupon Payment Maturity Price Bond A 100 0% na 1 92 Bond B 100 2% annually 2 98 what is f(1,2) semiannually
Bond | Face Value | Coupon | Payment | Maturity | Price |
Bond A | 100 | 0% | na | 1 | 92 |
Bond B | 100 | 2% | annually | 2 | 98 |
what is f(1,2) semiannually |
answer is f = (1.0443^0.5 -1) * 2 = 4.4%
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