A 8% bond with face amount 100 matures in seven years. Find the value of the...
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A 8% bond with face amount 100 matures in seven years. Find the value of the bond based on the following term structure for zero-coupon bond spot rates, where io,t denotes the nominal annual spot rate convertible semi-annually for a t-year term zero-coupon bond. t io,t 0.5 0.06 1 0.06 1.5 0.0625 4.5 6.5 2 2 3 3 4455669 0.065 2.5 0.065 0.0675 3.5 0.0675 0.0675 0.07 0.0725 5.5 0.075 0.0775 0.08 0.0825 A 8% bond with face amount 100 matures in seven years. Find the value of the bond based on the following term structure for zero-coupon bond spot rates, where io,t denotes the nominal annual spot rate convertible semi-annually for a t-year term zero-coupon bond. t io,t 0.5 0.06 1 0.06 1.5 0.0625 4.5 6.5 2 2 3 3 4455669 0.065 2.5 0.065 0.0675 3.5 0.0675 0.0675 0.07 0.0725 5.5 0.075 0.0775 0.08 0.0825
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