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Use the following relevant spot rates to price a 5% European coupon bond for BEnergy plc and 5% US bond MISO Inc. Assume all numbers
Use the following relevant spot rates to price a 5% European coupon bond for BEnergy plc and 5% US bond MISO Inc. Assume all numbers in $. Both bonds have a life of 3 yrs, and the face value is $1000.
t (in years) | Spot interest rate -r (%) |
0,5 | 2,235 |
1 | 2,45 |
1,5 | 2,56 |
2 | 2,87 |
2,5 | 2,93 |
3 | 3,03 |
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