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Bond P (with semiannual coupons) has a maturity of 0.5 years. Its YTM is 10%. What is the spot rate for 0.5 years? Bond Q
Bond P (with semiannual coupons) has a maturity of 0.5 years. Its YTM is 10%. What is the spot rate for 0.5 years? Bond Q trades at par. It has a maturity of one year. Its YTM is 11%. What is the coupon rate of this bond? Using the information about bonds P and Q above, determine the spot rate for one-year maturity. Using the information from the questions about bonds P and Q, determine the price of a bond R that pays a cash flow of USD 50 in six months and another cash flow of USD 50 at the end of one year
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