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Problem4 . You observe following bond prices: A zero coupon bond with maturity 6 months from now with Price 99.20 -A coupon bond paying 3%
Problem4 . You observe following bond prices: A zero coupon bond with maturity 6 months from now with Price 99.20 -A coupon bond paying 3% quarterly with maturity 3 months from -A coupon bond paying 6% quarterly with maturity 9 months from -A coupon bond paying 5% semi annually with maturity in 12 Compute the discount curve in quarterly intervals out to 12 mont hs now with Price 100.5485. now with Price 103.1655. months from now with Price 103,0325, (use bootstrapping)
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