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How to calculate a 3-month spot rate as an annual rate with monthly compounding. Zero coupon bond Maturity Month Bond Price 3 99.194 6 98.225
How to calculate a 3-month spot rate as an annual rate with monthly compounding.
Zero coupon bond
| Maturity Month | Bond Price |
| 3 | 99.194 |
| 6 | 98.225 |
| 9 | 97.454 |
| 12 | 95.807 |
| 15 | 94.238 |
| 18 | 92.873 |
| 21 | 90.236 |
| 24 | 88.096 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the 3month spot rate as an annual rate with monthly compounding you can use the formula ...
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Step: 2
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
