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You are given the following information. po(t) is the price for zero coupon bond with par value $100 maturing at par. Find: Term(t) Po(t)
You are given the following information. po(t) is the price for zero coupon bond with par value $100 maturing at par. Find: Term(t) Po(t) Spot rate s,(%) One year forward rate it-1,t (%) 1 3.00 2 4.51 3 88.26 4 4.60 5 78.91 1. Po(1), Po(4). 2. $3,55 3. (0,1,S2 4. 12,3, 13,4 5. use the above yield curve, find the price for $5000 par value bond, maturing 4 years with annual coupon rate 3%.
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An Introduction to the Mathematics of financial Derivatives
Authors: Salih N. Neftci
2nd Edition
978-0125153928, 9780080478647, 125153929, 978-0123846822
