Question
The continuously compounded six-month zero rate is 6.50% per annum. The price of a one-year bond that provides a coupon of 7.00% per annum semiannually
The continuously compounded six-month zero rate is 6.50% per annum. The price of a one-year bond that provides a coupon of 7.00% per annum semiannually is 93.50. What is the one-year continuously compounded zero rates? Please put answer within two decimol places.
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Money Banking And Financial Markets
Authors: Stephen Cecchetti, Kermit Schoenholtz
6th Edition
1260226786, 9781260226782
