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The face value of any bond below is $100. For coupon bonds, coupons are paid every 6 months. 4. (4 points) Consider 3 bonds. The
The face value of any bond below is $100. For coupon bonds, coupons are paid every 6 months.
4. (4 points) Consider 3 bonds. The price of the 6-month zero coupon bond is $99. The price of the 1-year zero coupon bond is $97.5. The coupon rate of the 18-month coupon bond is 2%. The yield of the 18-month bond is 3%. What's the price of the 18-month bond? What are 0.5-year, 1-year, and 1.5-year zero rates? What's the price of an 18-month coupon bond with coupon rate 2.4%? (Keep 6 digits after the decimal point) 4. (4 points) Consider 3 bonds. The price of the 6-month zero coupon bond is $99. The price of the 1-year zero coupon bond is $97.5. The coupon rate of the 18-month coupon bond is 2%. The yield of the 18-month bond is 3%. What's the price of the 18-month bond? What are 0.5-year, 1-year, and 1.5-year zero rates? What's the price of an 18-month coupon bond with coupon rate 2.4%? (Keep 6 digits after the decimal point)Step by Step Solution
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