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The tables below show, respectively, the characteristics of an annual-pay bond and spot interest rates. Bond A's price is not consistent with the spot rates.
The tables below show, respectively, the characteristics of an annual-pay bond and spot interest rates. Bond A's price is not consistent with the spot rates. Using the information in these tables, by how much is Bond A overvalued? Please report your answer in percentage of par to two decimal places assuming par value is 100. For instance, if the true price is 102.00 , then the bond would be overvalued by 1.77 (103.77 - 102.00=1.77 ). Your answer would then be 1.77
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