Question
The following is a list of prices for zero coupon bonds with the following years to maturity (annual compounding): Maturity (years) Price 1 943.4 2
The following is a list of prices for zero coupon bonds with the following years to maturity (annual compounding):
| Maturity (years) | Price |
| 1 | 943.4 |
| 2 | 881.68 |
| 3 | 808.88 |
| 4 | 742.09 |
What is the price of a 4 year bond with a 12% coupon rate paid annually
A. $742.09
B. $1222.09
C. $1000.00
D. $1141.92
E. None of these
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Microfinance Handbook An Institutional And Financial Perspective
Authors: Joanna Ledgerwood
1st Edition
0821343068, 978-0821343067
