Question
It is expected that in exactly three years, a 12-month pure discount bond with a face value of $5,000 will sell for $4,000. If 4-year
It is expected that in exactly three years, a 12-month pure discount bond with a face value of $5,000 will sell for $4,000. If 4-year spot (zero) rates are 3.00% p.a., based on pure expectation theory, what is the current 3-year spot rate?
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International Finance Transactions Policy And Regulation
Authors: Hal S. Scott
15th Edition
159941547X, 978-1599415475
