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The following table lists the discount factors implied by the government spot curve for the next 4 years: Time (years) Discount factor 1 0.951 2
The following table lists the discount factors implied by the government spot curve for the next 4 years:
Time (years) | Discount factor |
1 | 0.951 |
2 | 0.875 |
3 | 0.802 |
4 | 0.714 |
What would be the price of a 4 year 3.98% coupon bond with a Z spread of 89 bps, per $100 of par value?
Enter answer in percents.
Correct answer: 82.1536
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