The following information relates All three bonds pay interest annually. Based on the given sequence of spot
Question:
The following information relates
All three bonds pay interest annually.
Based on the given sequence of spot rates, the price of Bond X is closest to:
A. 95.02.
B. 95.28.
C. 97.63.
Transcribed Image Text:
Bond Coupon Rate X 8% Y 7% 6% N Time-to-Maturity 3 years 3 years 3 years Time-to-Maturity 1 year 2 years 3 years Spot Rates 8% 9% 10%
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