Question
Suppose that in June 2013, the canada june 2014 strip bond was selling for $988.53 , the canada june 2015 strip was selling for $969.15,
Suppose that in June 2013, the canada june 2014 strip bond was selling for $988.53 , the canada june 2015 strip was selling for $969.15, and the canada June 2016 strip was selling for $945.51. Each strip pays $1,000 at maturity. a. Calculate the yield to maturity of each bond. b. Calculate annually compounded 1-year forward rate of interest at June 2014, June 2015 and June 2016
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Financial Management Theory and Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
16th edition
1337902608, 978-1337902601
