Question
The YTM on a six-month Treasury STRIP is 3.9%, and the YTM on a one-year Treasury STRIP is 5.2%. All YTMs are quoted as APRs
The YTM on a six-month Treasury STRIP is 3.9%, and the YTM on a one-year Treasury STRIP is 5.2%. All YTMs are quoted as APRs with semiannual compounding. Given this information, what would be the price of a one-year coupon bond with a coupon rate of 4.3%, semi-annual payments and a face value of $1000?
Correct answer is 991.47 Please show all work and excel formulas.
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The Almanack Of Stanley Druckenmiller From Over 40 Years Of Investing Wisdom With Quantum Fund And Duquesne Capital Management
Authors: Rui Zhi Dong
1st Edition
B0B3NV2H9M, 979-8850611453
