Question
Given a 3 year Bullet Corporate Bond with a 4% coupon that trades at a 20 basis points credit spread compared with the Risk-Free Zero
Given a 3 year Bullet Corporate Bond with a 4% coupon that trades at a 20 basis points credit spread compared with the Risk-Free Zero Coupon curve. Using the following Risk-Free Zero Coupon Curve.
1 year Risk-Free Zero Coupon Rate: 4%
2 year Risk-Free Zero Coupon Rate: 4.5%
3 year Risk-Free Zero Coupon Rate:5%
what is the bond value and the bond yield?
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Linear Algebra A Modern Introduction
Authors: David Poole
3rd edition
9781133169574 , 978-0538735452
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