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Suppose a 1 year zero coupon bond price is $103, and a 2 year zero coupon bond price is $105. Both pay $100 at maturity.
- Suppose a 1 year zero coupon bond price is $103, and a 2 year zero coupon bond price is $105. Both pay $100 at maturity. What is the price of a 10% coupon bond with 2 year to maturity, and annual coupon payment?
- A two year maturity bond has coupon rate of 5%, principal of $1,000 The current one year spot rate is 2%, and two year spot rate is 3%.What is the yield to maturity of this bond?
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Financial and Management Accounting
Authors: Pauline Weetman
7th edition
1292086599, 978-1292086590
