Question
The following table gives the prices of bonds Bond Principal ($) Time to Maturity (yrs) Annual Coupon ($)* Bond Price ($) 100 0.5 0.0 94
The following table gives the prices of bonds
| Bond Principal ($) | Time to Maturity (yrs) | Annual Coupon ($)* | Bond Price ($) |
| 100 | 0.5 | 0.0 | 94 |
| 100 | 1.0 | 2.0 | 89 |
| 100 | 1.5 | 4.0 | 92 |
| 100 | 2.0 | 6.0 | 100 |
*Half the stated coupon is paid every six months
Calculate zero rates for maturities of 6 months, 12 months, and 18 months.
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Asset Allocation And International Investments
Authors: G. Gregoriou
1st Edition
023001917X,0230626513
