Question
The six-month zero rate is 8% per annum with semi-annual compounding. The price of a one-year bond that provides a coupon of 6% per annum
The six-month zero rate is 8% per annum with semi-annual compounding. The price of a one-year bond that provides a coupon of 6% per annum semiannually is 95. What is the one-year continuously compounded zero rate?
*Note: par value of this bond is 100. Use at least 6 decimals for calculation
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Financial Management An Introduction
Authors: Jim McMenamin
1st Edition
0415181623, 9780415181624
