Question
In a bond market, 1 year zero coupon bonds are selling at a yield of 6%, and 2 year bonds with 10% coupon have a
In a bond market, 1 year zero coupon bonds are selling at a yield of 6%, and 2 year bonds with 10% coupon have a yield of 8%.
Calculate the price, yield and duration of 2 year bonds with 5% coupon and face value, $ 100,000.
Ans: Price = 94570.80; Yield = 8.05%
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
14th edition
1337090581, 978-1337090582
