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Consider that you have collected the following information regarding several default free bonds: Time Left to Maturity (Years) Face Value Coupon Rate YTM Price
Consider that you have collected the following information regarding several default free bonds: Time Left to Maturity (Years) Face Value Coupon Rate YTM Price Bond A Bond B Bond C Bond D 3 100 1.4963% 0% 1.4963% ? ? ? 100 3 100 3% 1.98% ? 94.232 102.941 ? 1 100 4% Consider additionally that 2f3 is 3.007% and that there are no arbitrage opportunities. All coupon payments are paid annually and there are no accrued interests. Find the price of Bond D today. Answer:
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Financial Management For Decision Makers
Authors: Peter Atrill, Paul Hurley
2nd Canadian Edition
138011605, 978-0138011604
