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Use this list of Treasury bond prices as of 2/15/2023 to derive the risk free discount factors for cash flows to be received in 6
Use this list of Treasury bond prices as of 2/15/2023 to derive the risk free discount factors for cash flows to be received in 6 months, I year and 1.5 years from 2/15/2023. Coupon rates listed below are annual, but coupon payments are made every six months.
Bond Maturity Coupon Price
A 2/15/2024 5.5 101.789
B 8/15/2023 4.5 100.613
C 8/15/2024 5.75 102.336
Use the discount factors you derive above to value a fourth bond , D , that matures 8/15/2024 and has a coupon of 3 percent per year (but pays semiannually)
Enter the price of bond D below.
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