Question
Refer to the following table: Years to Maturity 1-year 2-year 3-year Zero-Coupon Bonds Prices $93.02 P Z2 P Z3 Coupon Bonds Coupon Rate 7% 8%
Refer to the following table:
| Years to Maturity | 1-year | 2-year | 3-year |
| Zero-Coupon Bonds | |||
| Prices | $93.02 | PZ2 | PZ3 |
| Coupon Bonds | |||
| Coupon Rate | 7% | 8% | 9% |
| Prices | PC1 | $98.34 | $96.73 |
All bonds have the face value F = $100. For simplicity, assume that coupons are paid annually.
Determine the prices PZ2, PZ3, and PC1, respectively. (Keep 2 decimal places, e.g XX.12)
PZ2: PZ3: PC1:
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Analyzing And Forecasting Futures Prices
Authors: Anthony Herbst
1st Edition
0595142990, 978-0595142996
