Question
The 6-month and 1-year zero rate both are 12%. For a bond that has a life of 24 months and pays a coupon of 10%
The 6-month and 1-year zero rate both are 12%. For a bond that has a life of 24 months and pays a coupon of 10% per annum (with semi-annual payments and one having just been made), the yield is 1.5% lower than the coupon per annum. What is bonds price? What is the 24 month zero rate?
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International Financial Management
Authors: Cheol Eun, Bruce Resnick
5thEdition
0073382345, 9780073382340
