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For an upvote full working must be shown, and each step of the calculation must be correct. Then the final answer must be correct to
For an upvote full working must be shown, and each step of the calculation must be correct. Then the final answer must be correct to the decimal place.
Today is July Joan has a portfolio which consists of two different types of financial instruments henceforth referred to as instrument A and instrument B Joan purchased all instruments on July
to create this portfolio and this portfolio is composed of units of instrument A and units of instrument B
Instrument A is a zerocoupon bond with a face value of This bond matures at par. The maturity date is January
Instrument B is a Treasury bond with a coupon rate of pa and face value of This bond matures at par. The maturity date is January
b Calculate the current price of instrument B per $ face value todays value Round your answer to four decimal places. Assume the yield rate is pa and Joan has just received
the coupon payment.
a
b
c
d
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