Question: 2. Consider a 100 face value bond with coupon rate of 4.0% paid semiannually and redemption value of 115. The spot rates of interest in

2. Consider a 100 face value bond with coupon rate of

2. Consider a 100 face value bond with coupon rate of 4.0% paid semiannually and redemption value of 115. The spot rates of interest in the market are given by (years) i (%) 0.5 5.0 1.0 4.5 1.5 4.5 2.0 4.0 2.5 4.0 3.0 3.5 3.5 3.5 4.0 3.0 4.5 3.0 5.0 2.5 Find the price of the bond if it matures in 5 years

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