Question
Consider the following prices of zero coupon bonds, each with a face value of $1,000, for different maturities: Maturity Price 1 962 2 925 3
Consider the following prices of zero coupon bonds, each with a face value of $1,000, for different maturities:
| Maturity | Price |
| 1 | 962 |
| 2 | 925 |
| 3 | 889 |
Consider a bond with maturity of 3 years, a coupon rate of 5% and face value of $1,000. What is the price of this bond?
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Managerial Finance In A Canadian Setting
Authors: X. Lusztig, X. Schwab
4th Edition
0409806021, 1483106330, 9780409806021, 9781483106335
