Question
Problem 1 Table 1.1 contains information about three bonds that is traded on a normal market. All three bonds have exactly one year until next
Problem 1 Table 1.1 contains information about three bonds that is traded on a normal market. All three bonds have exactly one year until next term (term = payment dates).
| Type | Coupon |
| Maturity | 3 |
| Coupon rate | 4% |
| Payments pr. term | 1 |
| Price | 103,61 |
| Type | Linear |
| Maturity | 3 |
| Coupon rate | 5% |
| Payments pr. term | 1 |
| Price | 105,27 |
| Type | Annuity |
| Maturity | 3 |
| Coupon rate | 0,05 |
| Payments pr. term | 1 |
| Price | 105,31 |
| Installment | kr. -36,72 |
Calculate the discount factors2 d(t), t = 1, 2, 3 years and the corresponding zero-coupon default-free yields with annual compounding y1(t), t = 1, 2, 3 years on the concerned market.
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Cornerstones Of Financial Accounting
Authors: Bertrand Piccard, Jay Rich, Jeff Jones, Maryanne Mowen, Don Hansen, Nick Jones
1st Edition
0324657730, 9780324657739
