Question
Current 1- and 2-year spot interest rates are 5% and 7%, respectively. The price of a 2-year Treasury coupon bond with face value of $100
Current 1- and 2-year spot interest rates are 5% and 7%, respectively. The price of a 2-year Treasury coupon bond with face value of $100 and a coupon rate of 8% is
A.101.95
B.100.95
C.100.01
D.None of the answers are correct
E.101.89
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
5th edition
321280299, 321280296, 978-0321280299
