Question
The following annual forward rates are available in the market today: F0,1 = 0.80%, F1,2 = 1.12%, F2,3 = 3.94%, F3,4 = 3.28% and F4,5
The following annual forward rates are available in the market today: F0,1 = 0.80%, F1,2 = 1.12%, F2,3 = 3.94%, F3,4 = 3.28% and F4,5 = 3.14%. The value per 100 of par value of a two-year, 3.5% coupon bond, with interest paid annually, is closest to:
| a. 101.58. | ||
| b. 105.01. | ||
| c. 109.82. | ||
| d. 122.10 | ||
| e. 124.17 |
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Fundamental accounting principle
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st edition
978-0078025587
