Question
You have a 1-year zero coupon bond with a principal of $1,500 and a 2-year 5% coupon bond with a principal of $2,000. The prices
You have a 1-year zero coupon bond with a principal of $1,500 and a 2-year 5% coupon bond with a principal of $2,000. The prices are $1,450 for the zero coupon bond and $2,001.429 for the coupon bond. Compute the term structure of interest rates
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Financial Modeling
Authors: Simon Benninga, Tal Mofkadi
5th Edition
0262046423, 9780253337825
