Consider the Province of British Columbia strip bond in Table 9.1. a. Calculate the bonds market price
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Consider the Province of British Columbia strip bond in Table 9.1.
a. Calculate the bond’s market price on June 1, 2009, based on the quoted yield of 4.311% compounded semiannually.
b. What would the price be one year later if the bond’s yield remains the same?
Table 9.1:
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To calculate the market price of a strip bond we use the present value formula where the price of th...View the full answer
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