Question
The prices of a 1-year 1%-coupon bond, 2-year 2%-coupon bond, 3-year 3%-coupon bond, and 4-year 4%-coupon bond are $98.87, $100, $101.44, and $106.88, respectively. All
The prices of a 1-year 1%-coupon bond, 2-year 2%-coupon bond, 3-year 3%-coupon bond, and 4-year 4%-coupon bond are $98.87, $100, $101.44, and $106.88, respectively. All bonds pay coupons annually and have a par value of $100. Whats the price of a 4-year $100-par bond paying 2% annual coupons, to the nearest dollar?
- 98
- 99
- 100
- Something else
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Multinational Finance
Authors: Kirt Butler
2nd Edition
0324004508, 978-0324004502
