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The face value of 4 risk - free zero - coupon bonds below is $ 1 , 0 0 0 . table [ [
The face value of riskfree zerocoupon bonds below is $ tableBondTime to Maturity,PriceA months,B months,C months,D months, a marks Construct the spot zero curve; ie calculate the month, month, month, month spot rate quarterly APR b marks Based on the spot zero curve, construct the forward curve; ie calculate the forward rates quarterly APR c marks A riskfree quarterlycoupon bond is in the same market. It has a face value of $ coupon rate and year to maturity. Price the coupon bond with the forward curve. What is the yield to maturity of bond Enote: you may do a sanity check by pricing the bond with the spot curve.
The face value of riskfree zerocoupon bonds below is $
tableBondTime to Maturity,PriceA months,B months,C months,D months,
a marks Construct the spot zero curve; ie calculate the month, month, month, month spot rate quarterly APR
b marks Based on the spot zero curve, construct the forward curve; ie calculate the forward rates quarterly APR
c marks A riskfree quarterlycoupon bond is in the same market. It has a face value of $ coupon rate and year to maturity. Price the coupon bond with the forward curve. What is the yield to maturity of bond Enote: you may do a sanity check by pricing the bond with the spot curve.
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