Question
Prices and yields. A 10-year German bond has a FV=100 and a coupon rate of 5% annually. Interest rate is 6%. What is the bonds
Prices and yields. A 10-year German bond has a FV=100 and a coupon rate of 5% annually. Interest rate is 6%. What is the bonds PV?
Calculate the result by:
-calculating the discount factors for each year
and
-using annuity factor for temporary cash flow
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Mathematical Finance Core Theory Problems And Statistical Algorithms
Authors: Nikolai Dokuchaev
1st Edition
0415414482, 978-0415414487
