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In early 2018 TD Ameritrade participated with The Goldman Sachs Group, Inc. to sell a bond with the following characteristics: Coupon: 2.50% to 03/29/2019; 3.50%
- In early 2018 TD Ameritrade participated with The Goldman Sachs Group, Inc. to sell a bond with the following characteristics:
- Coupon: 2.50% to 03/29/2019; 3.50% to 03/29/2020; 4.00% to 03/29/2021.
- Payment Frequency: Semi-Annually.
- Maturity: 03/29/2021.
Use your knowledge of annuity formation using perpetuities, and of zero-coupon bonds, to derive a closed-form solution for the price of this bond on 03/29/2018.
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Introduction to Behavioral Economics
Authors: David R. Just
1st edition
0470596228, 978-0470596227
