Question
Table below reports information on zero coupon bonds X and Y. Bond Effective Annual Yield Time to Maturity Face Value X 7.05% 6 months $100.00
Table below reports information on zero coupon bonds X and Y.
| Bond | Effective Annual Yield | Time to Maturity | Face Value |
| X | 7.05% | 6 months | $100.00 |
| Y | 8.50% | 12 months | $100.00 |
Under the expectations hypothesis, in 6 months, price of Bond Y will be _________. Under the liquidity preference theory, its price will be _________. (rounded to 1 decimal place)
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The Palgrave International Handbook Of Basic Income
Authors: Malcolm Torry
1st Edition
3030236137, 978-3030236137
