Assume the current Treasury yield curve shows that the spot rates for six months, one year, and

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Assume the current Treasury yield curve shows that the spot rates for six months, one year, and 1½ years are 1%, 1.1%, and 1.3%, all quoted as semiannually compounded APRs. What is the price of a $1000 par, 4.25% coupon bond maturing in 1½ years (the next coupon is exactly six months from now)?

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Fundamentals Of Corporate Finance

ISBN: 9781292437156

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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