Question
Today's price for a 1-year zero-coupon risk-free bond is $943.25, and the price of a 2-year zero-coupon risk-free bond is $906.46. What should be the
Today's price for a 1-year zero-coupon risk-free bond is $943.25, and the price of a 2-year zero-coupon risk-free bond is $906.46. What should be the price of a risk-free, 2 year annual coupon bond with a coupon rate of 4.0%? Round answer to the nearest penny.
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Public Finance and Public Policy
Authors: Jonathan Gruber
5th edition
1464143331, 978-1464143335
