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telsa issues different bonds in the marketOne of their bonds has a maturity of 1.5 years , the annual coupon rate is 4 % and
telsa issues different bonds in the marketOne of their bonds has a maturity of 1.5 years , the annual coupon rate is 4 % and the coupons are paid semiannually. the face value is $100. A table of spot rates given below. Can you try to price this bond? Based on the price you calculate, is the bond a premium bond, discount bond, or a par bond ?
Maturity (year) Spot Rate
.5 1.5%
1 2.5%
1.5 4%
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