Suppose the six month spot rate is 10.9% and the six month forward rate beginning in six
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Question:
Suppose the six month spot rate is 10.9% and the six month forward rate beginning in six months is 10.1%.
What is the price of a 1 year bond paying a coupon of 5.7%?
Assume coupons are paid semi-annually and the face value of the bond is $1,000. Assume rates are expressed BEY.
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1259024962
6th Canadian edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
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