3 Assume the real yield curve for bonds of a particular credit quality is flat at...
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3 Assume the real yield curve for bonds of a particular credit quality is flat at 15% per annum and the expected inflation rate for all maturities is also the same at 10% per annum. What is the current value of a holding of £150,000 in face value of a three-year zero coupon bond of that credit quality (to the nearest £100)? * £49,400 £65,800 £74,100 £79,100 £118,600 3 Assume the real yield curve for bonds of a particular credit quality is flat at 15% per annum and the expected inflation rate for all maturities is also the same at 10% per annum. What is the current value of a holding of £150,000 in face value of a three-year zero coupon bond of that credit quality (to the nearest £100)? * £49,400 £65,800 £74,100 £79,100 £118,600
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