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Recall that the Par Rate is the coupon rate such that a bond sells at par. A company wants to issue a 3 year bond
Recall that the Par Rate is the coupon rate such that a bond sells at par. A
company wants to issue a year bond with annual payment that sells at
par. Assume that the rates in percentage points are and
and The coupon rate should be set at Hint Work out and apply
the Bond Par Yield formula to the year bond case.Recall that the Par Rate is the coupon rate such that a bond sells at par. A
company wants to issue a year bond with annual payment that sells at
par. Assume that the rates in percentage points are and
and The coupon rate should be set at Hint Work out and apply
the Bond Par Yield formula to the year bond case.
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