Question
.The 1-year, 2-year, and 3-year rates are 3%, 5%, and 7%, respectively. The rates are annual and continuously compounded. Given a 3-year annual pay bond
.The 1-year, 2-year, and 3-year rates are 3%, 5%, and 7%, respectively. The rates are annual and continuously compounded. Given a 3-year annual pay bond (the bond pays a coupon annually), what coupon rate should the bond pay to sell at par?
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New York Institute Of Finance How Mutual Funds Work
Authors: Albert J. Fredman, Russ Wiles
1st Edition
0130125016, 9780130125019
