Question
Suppose the yield curve is given by r 0 (1)=4% and r 0 (2)=7% (a) What is the price of a 1-year zero coupon bond
Suppose the yield curve is given by r0(1)=4% and r0(2)=7%
(a) What is the price of a 1-year zero coupon bond with face value $100? (4 points)
(b) What is the price of a 2-year zero coupon bond with face value $100? (4 points)
(c) What is the price of a 2-year risk-free bond with face value $100 and annual coupons of 5%? (4 points)
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MATLAB An Introduction With Applications
Authors: Amos Gilat
3rd Edition
0470108770, 978-0470108772
