Question
The 6-months zero rate is 8.60% per annum with continuous compounding. The price of a one-year bond that provides a coupon of 10% per annum
The 6-months zero rate is 8.60% per annum with continuous compounding. The price of a one-year bond that provides a coupon of 10% per annum semi-annually is 98. The par value of bond is 100.
What is the one-year zero rate measured in continuous compounding?
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Codes Of Finance
Authors: Vincent Antonin Lépinay
1st Edition
0691151504, 978-0691151502
