Question
Zero Coupon Bond Trading Information Zero Coupon Bond Years to Maturity Yield to Maturity* Price A 0.5 2.31% 98.8646 B 1.0 2.42% 97.6372 C 1.5
Zero Coupon Bond Trading Information
| Zero Coupon Bond | Years to Maturity | Yield to Maturity* | Price |
| A | 0.5 | 2.31% | 98.8646 |
| B | 1.0 | 2.42% | 97.6372 |
| C | 1.5 | 2.55% | 96.2934 |
| D | 2.0 | 2.66% | 94.8850 |
| * = compounded semi-annually | |||
Using zero coupon bond trading information shown in the table above, what is the price of a coupon-paying bond with a face value of $400, maturing in 2 years, and paying semi-annual coupons at a coupon rate of 2.9% compounded semi-annually? $Answer (Give answer to 2 decimal places)
Please solve without excel! Thank you
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Salomon Smith Barney Guide To Mortgage Backed And Asset Backed Securities
Authors: Lakhbir Hayre
1st Edition
0471385875, 978-0471385875
