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The Shamrock Corporation has just issued two bonds, 1) a 15-year, $1000 par zero-coupon bond with 12% yield to maturity and 2) a 3-year, 6.5%
The Shamrock Corporation has just issued two bonds, 1) a 15-year, $1000 par zero-coupon bond with 12% yield to maturity and 2) a 3-year, 6.5% coupon, $100 par bond with a yield to maturity of 7%. (Assume semi-annual compounding)
a) What is the market price of the zero-coupon bond in three year?b) What is the current market price of a coupon bond?
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Fixed Income Securities Tools For Todays Markets
Authors: Bruce Tuckman, Angel Serrat
3rd Edition
0470891696, 978-0470891698
