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1.) Calculate the 1.5-year forward rate? 2.) Calculate the price of two-year bond providing a semi-annual coupon of 7% per annum? The Treasury bond prices
1.) Calculate the 1.5-year forward rate?
2.) Calculate the price of two-year bond providing a semi-annual coupon of 7% per annum?
The Treasury bond prices in this table are DIFFERENT from the last problem's. Bond Principal ($) Time to Maturity (yrs) Annual Coupon ($)* 0.0 100 0.5 100 1.0 0.0 100 6.2 100 8.0 *Half the stated coupon is paid every six months 1.5 2.0 Bond Price ($) 98 95 101 104
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Fundamentals of Futures and Options Markets
Authors: John C. Hull
8th edition
978-1292155036, 1292155035, 132993341, 978-0132993340
