Question
There are two coupon bonds with coupons paid annually. Their prices, coupons, principals, and years to maturity are given in the table below. Infer from
There are two coupon bonds with coupons paid annually. Their prices, coupons, principals, and years to maturity are given in the table below. Infer from the coupon bond prices the prices of discount (zero-coupon) bonds with 2 years to maturity (B2):
| Bond | Price | Principal | Coupon | Years to Maturity |
| A | 92.70 | 100 | 3 | 1 |
| B | 102.10 | 100 | 6 | 2 |
| A. 0.9123 | |
| B. 0.7321 | |
| C. 0.9000 | |
| D. 0.8185 |
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Business Analytics
Authors: Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann
5th Edition
0357902211, 978-0357902219
