Question
The following continuously compounded rates are observed: Maturity in Years Zero Rate .5 5.0% 1.0 5.8% 1.5 6.4% 2.0 6.8% The price of a $1,000,
The following continuously compounded rates are observed:
| Maturity in Years | Zero Rate |
| .5 | 5.0% |
| 1.0 | 5.8% |
| 1.5 | 6.4% |
| 2.0 | 6.8% |
The price of a $1,000, 3% semi-annual coupon bond will be closest to
- 101.25
- 100.875
- 92.83
- 98.38
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
15th edition
77861612, 1259194078, 978-0077861612, 978-1259194078
