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Company XYZ has the following cash flows: Time Spot Rate Liability Cash Flow 2 4.00% 10,000 3 83 15,000 To exactly match the liability cash
Company XYZ has the following cash flows: Time Spot Rate Liability Cash Flow 2 4.00% 10,000 3 83 15,000 To exactly match the liability cash flows, XYZ purchased a two year $10,000 zero coupon bond and a three year $15,000 zero coupon bond for a price of $22,503.87. What is the price of a three year $1,000 zero coupon bond? A 872 B 878 884 D 890 E 896
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