Question
Q5. Consider the prices below of four zero coupon bonds, maturing at the end of years one, two, three, and four. What can you say
| Q5. | Consider the prices below of four zero coupon bonds, maturing at the end of years one, two, three, and four. What can you say based on this information about the shape of the yield curve? | |
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|
| |
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| Maturity | Price |
|
| 1 | 95.2381 |
|
| 2 | 87.3439 |
|
| 3 | 77.2184 |
|
| 4 | 68.3014 |
|
| (3 marks) | |
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The Finance Book
Authors: Stuart Warner, Si Hussain
1st Edition
1292123648, 978-1292123646
