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Consider three zero coupon bonds below. All have $1,000 par value. t Price 1 980.39 2 946.27 3 909.83 Consider 3-year, 4% coupon rate, $1000
Consider three zero coupon bonds below. All have $1,000 par value.
| t | Price |
| 1 | 980.39 |
| 2 | 946.27 |
| 3 | 909.83 |
- Consider 3-year, 4% coupon rate, $1000 par value, annual coupon paying bond. What is the value of the bond? (4 pts)
- What is the expected value of the 2-year zero coupon bond one year from now? (4pts)
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Introduction To Derivatives And Risk Management
Authors: Robert Brooks, Don M Chance
9th Edition
1133190197, 978-1133190196
