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question Maturities of Zero Prices of the Zero Coupon Coupon Bonds Bonds 1 94.3396 2 89.8452 3 86.3838 4 83.0585 You are required to value
question Maturities of Zero Prices of the Zero Coupon Coupon Bonds Bonds 1 94.3396 2 89.8452 3 86.3838 4 83.0585 You are required to value a coupon bond that pays an interest rate of 7 per cent on an annual basis and has four years to run to maturity. Information is provided below on the market prices for four zero coupon bonds, maturing in years one to four, and the nominal value of each of these the bonds is 100. Explain briefly the reason for the use of the data on zero coupon bonds in the valuation of coupon bonds
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