The 1-year zero-coupon bond is trading at $93.46, while the 1-year coupon bond, with a semi-...
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The 1-year zero-coupon bond is trading at $93.46, while the 1-year coupon bond, with a semi- annual coupon rate of 2% (APR), is trading at $95.38. What is the fair price of the 0.5-years zero-coupon bond if there is no arbitrage? All bonds have a face value of $100. Express your answer in dollars, rounded to the nearest cent, e.g., 17.23. 98.54 The 1-year zero-coupon bond is trading at $93.46, while the 1-year coupon bond, with a semi- annual coupon rate of 2% (APR), is trading at $95.38. What is the fair price of the 0.5-years zero-coupon bond if there is no arbitrage? All bonds have a face value of $100. Express your answer in dollars, rounded to the nearest cent, e.g., 17.23. 98.54
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To calculate the fair price of the 05year zerocoupon bond we can use the concept of noarbitrage If t... View the full answer
Related Book For
Practical Management Science
ISBN: 978-1305250901
5th edition
Authors: Wayne L. Winston, Christian Albright
Posted Date:
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