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The Treasury bond prices in this table are DIFFERENT from the last problem's. Bond Principal ($) Time to Maturity (yrs) Annual Coupon ($)* Bond Price
The Treasury bond prices in this table are DIFFERENT from the last problem's.
| Bond Principal ($) | Time to Maturity (yrs) | Annual Coupon ($)* | Bond Price ($) |
| 100 | 0.5 | 0.0 | 98 |
| 100 | 1.0 | 0.0 | 95 |
| 100 | 1.5 | 6.2 | 95 |
| 100 | 2.0 | 8.0 | 104 |
*Half the stated coupon is paid every six months
Calculate the 1.5-year forward rate.
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A Study In Public Finance
Authors: A. C. Pigou
1st Edition
1443722766, 978-1443722766
