Question
You have a treasury bond that pays $100 in one year and $1,100 in two years. Notice that the yield to maturity on a one-year
You have a treasury bond that pays $100 in one year and $1,100 in two years. Notice that the yield to maturity on a one-year zero coupon treasury is 1% and the yield to maturity on a two-year zero coupon treasury is 2%. What should be the price of your bond? *Be sure to enter all currency responses without currency symbols or commas, and use two decimal places of precision.
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
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