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The cash price of a $1,000 bond that matures in exactly 18 months is $996.67. Current continuously compounded spot (zero) rates are given in
The cash price of a $1,000 bond that matures in exactly 18 months is $996.67. Current continuously compounded spot (zero) rates are given in the table below. Maturity (months) 6 12 18 24 Spot (zero) interest rate (% p.a.) 3.3 3.5 3.7 3.9 If the bond pays coupons semi-annually, what is the annual coupon rate?
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To calculate the annual coupon rate of a bond we must first calculate the semiannual coupon rate We ...
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Fundamentals of Investments, Valuation and Management
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
8th edition
1259720697, 1259720691, 1260109437, 9781260109436, 978-1259720697
