You want to price a 2-year Treasury bond with a principal of $1,000 and coupon rate...
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You want to price a 2-year Treasury bond with a principal of $1,000 and coupon rate of 4% paid semi-annually. What is the theoretical price using following spot rates (10 points) Maturity Spot Rate 0.5 1 1.5 2 4.10% 5.50% 6.20% 6.60% You want to price a 2-year Treasury bond with a principal of $1,000 and coupon rate of 4% paid semi-annually. What is the theoretical price using following spot rates (10 points) Maturity Spot Rate 0.5 1 1.5 2 4.10% 5.50% 6.20% 6.60%
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To calculate the theoretical price of the 2year Treasury bond we need to discount the cash flows fro... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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