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Suppose that the continuous forward rate isr(t) = 0.033 + 0.0012t. What is the current value of a par $100 zero-coupon bond with a maturity
- Suppose that the continuous forward rate isr(t) = 0.033 + 0.0012t. What is the current value of a par $100 zero-coupon bond with a maturity of 15 years?
- Suppose the continuous forward rate isr(t) = 0.04 + 0.001twhen a 8-year zero coupon bond is purchased. Six months later the forward rate isr(t) = 0.03 + 0.0013tand bond is sold. What is the return?
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Macroeconomics Principles Applications and Tools
Authors: Arthur O'Sullivan, Steven Sheffrin, Stephen Perez
9th edition
978-0134089027, 134089022, 978-0134420684
