Question
The seven year Cyprus Government discounted bond (zero coupon) earns in the secondary market an annual interest of 3.85%. The government of Cyprus is to
The seven year Cyprus Government discounted bond (zero coupon) earns in the secondary market an annual interest of 3.85%. The government of Cyprus is to make a new issue of such bonds in the primary market. How much are you prepared to pay to buy a five year 10,000 coupon (applying the secondary market annual interest rate)?
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
10th Edition
0201785676, 9780201785678
