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The price of the zero-coupon government bonds with a face value of 100 pounds and a time-to maturity of 1,2,3,4 years are, respectively, 98.04pounds, 94.26
The price of the zero-coupon government bonds with a face value of 100 pounds and a time-to maturity of 1,2,3,4 years are, respectively, 98.04pounds, 94.26 pounds, 88.90ponuds, and 82.27 pounds
(1)Using the prices of the zero-coupon government bonds, calculate the price of a coupon-bearing bond with face value 10000pounds, coupon rate 6%, and 4 years to maturity. Coupon payments are made at the end of each year only.
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