Question
Maturity Interest Rate 1st yr 6.0% 2nd yr 6.25% 3rd yr 6.5% 4th yr 7.0% Using the term structure of interest rates in the table
Maturity Interest Rate
1st yr 6.0%
2nd yr 6.25%
3rd yr 6.5%
4th yr 7.0%
Using the term structure of interest rates in the table above to solve the following problem. A bond pays $100 in years 1, 2, 3 and $1,100 in year 4. What is the price of the bond today? What is the YTM?
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Fundamentals Of Healthcare Finance
Authors: Louis C. Gapenski
2nd Edition
1567934757, 978-1567934755
