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Using the following yield curve, what is the price of a 1.5-year floating rate bond paying interest semiannually plus a spread of 80 basis points?
Using the following yield curve, what is the price of a 1.5-year floating rate bond paying interest semiannually plus a spread of 80 basis points?
maturity t | Discount factor Z |
0.25 | 0.996 |
0.5 | 0.9928 |
0.75 | 0.991 |
1 | 0.978 |
1.25 | 0.9762 |
1.5 | 0.925 |
1.75 | 0.915 |
2 | 0.906 |
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