Question
URGENT!!! PLEASE ANSWER AND THANK YOU Find the OAS of a 3 year callable bond trading at 97.597 . Assume the bond pays an annual
URGENT!!! PLEASE ANSWER AND THANK YOU
Find the OAS of a 3 year callable bond trading at 97.597 . Assume the bond pays an annual coupon of 9.6% and is callable at 101.75 at the end of each year. Assume current 1 year rates are 9.6%, and we expect them to go up or down by 0.6% each year with equal probability. (Provide your answer in basis points, rounded to the nearest basis point.)
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Public Finance
Authors: Harvey S Rosen
6th Edition
0072374055, 978-0072374056
