Question
The yield to maturity on 1-year zero-coupon bonds is currently 9%; the YTM on 2-year zeros is 10%; the YTM on 3-year zeros is 10.5%.
The yield to maturity on 1-year zero-coupon bonds is currently 9%; the YTM on 2-year zeros is 10%; the YTM on 3-year zeros is 10.5%. The Treasury plans to issue a 3-year maturity coupon bond, paying coupons once per year with a coupon rate of 11%. The face value of the bond is $1,000. At what price will the bond sell?
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Liquidity Risk Management In Banks Economic And Regulatory Issues
Authors: Roberto Ruozi, Pierpaolo Ferrari
1st Edition
3642295800, 978-3642295805
