Question
Calculate the price of a 1-year Treasury bond with an annual coupon of 1.5% paid semi-annually. Assume the effective annual discount rate is 1% and
Calculate the price of a 1-year Treasury bond with an annual coupon of 1.5% paid semi-annually. Assume the effective annual discount rate is 1% and the face value is $100.
Hint: 6mo interest rate = 1yr stated interest rate/2
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Financial Times Guide To The Financial Markets
Authors: Glen Arnold
1st Edition
0273730002, 978-0273730002
