Question

At the end of the current year, you observe the following data about Government of Canada pure discount bonds (zero coupon bonds):


a. What price do you expect bond C to sell for at the end of year 2?
b. The Government of Canada is considering issuing a coupon bond. The bond will pay a
7-percent coupon, paid annually. The face value of the bond will be $1,000. What price would you expect the bond to sell fortoday?


$1.99
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  • CreatedFebruary 25, 2015
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