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hand calculation - Financial Mathematics 4) The price of a zero-coupon bond can be formally written as plt. T) = 100e - (T-1) where t

hand calculation - Financial Mathematics
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4) The price of a zero-coupon bond can be formally written as plt. T) = 100e - (T-1) where t is the current time and T is the time to maturity. a) What is the price of the bond when r = 6%, t = 0, and T = 107 What about when t = 5 and T = 10? Interpret. b) (optional) Derive analytical expressions form and Evaluate using r = 6%, 1 = 0, and T = 10, Interpret

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