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Consider the situation where zero rates, measured with continuous compounding, are as in the below table. Suppose that a two - year bond with a
Consider the situation where zero rates, measured with continuous compounding, are as in the below table. Suppose that a twoyear bond with a principal of $ provides coupons at the rate of per annum semiannually. What is the theoretical price of the bond.
tableMaturity yearsZero rate with continuous compounding
$
$
$
$
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