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What is the price of a 4-year coupon bond with annual coupon rate equal to 3.0 under two sets of spot rates given in column
What is the price of a 4-year coupon bond with annual coupon rate equal to 3.0 under two sets of spot rates given in column 2 and column 3? You are planning to sell these bonds at the end of year 2. At what price should you sell them? 1 year Time-to-Maturity Spot Rate A Spot Rate B 0.39% 4.08% 2 years 1.40% 4.01% 3 years 2.50% 3.70% 3.60% 3.50% 4 years What is the price of a 4-year coupon bond with annual coupon rate equal to 3.0 under two sets of spot rates given in column 2 and column 3? You are planning to sell these bonds at the end of year 2. At what price should you sell them? 1 year Time-to-Maturity Spot Rate A Spot Rate B 0.39% 4.08% 2 years 1.40% 4.01% 3 years 2.50% 3.70% 3.60% 3.50% 4 years
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