Assume that the six-month Treasury spot rate is 1.6% APR, and the one-year rate is 2% APR,
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Assume that the six-month Treasury spot rate is 1.6% APR, and the one-year rate is 2% APR, both compounded semiannually. What is the price of a one-year $1000 par Treasury bond with 2% coupons?
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Two percent coupon means 2 of 1000 or 20 paid out in sixmonth installments of 10 each The bond m...View the full answer
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780133507676
3rd Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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