Question
What is the price of a risk-free 7% annual coupon-paying bond with 3 years to maturity and a face value of $1,000, if the spot
What is the price of a risk-free 7% annual coupon-paying bond with 3 years to maturity and a face value of $1,000, if the spot rates for risk-free zero coupon bonds with 1, 2, and 3 years to maturity are 7.8%, 8.55%, and 8.8%, respectively? Please choose the answer that is closest to the correct answer.
Group of answer choices
\$923.16
\$892.76
\$1,033.41
\$988.88
\$955.14
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Finance
Authors: Angelico Groppelli, Ehsan Nikbakht
2nd Edition
0812043731, 978-0812043730
