Question: Assume that the continuously compounded zero rate curve has the form r(0,t) = 0.05 + 0.005/1 + t, Vt > 0. (i) Find the price

Assume that the continuously compounded zero rate curve has the form r(0,t) = 0.05 + 0.005/1 + t, Vt > 0. (i) Find the price of a two year semiannual coupon bond with coupon rate 7%. (ii) Find the price of a semiannual coupon bond with coupon rate 7% and maturity in 19 months. Assume that the continuously compounded zero rate curve has the form r(0,t) = 0.05 + 0.005/1 + t, Vt > 0. (i) Find the price of a two year semiannual coupon bond with coupon rate 7%. (ii) Find the price of a semiannual coupon bond with coupon rate 7% and maturity in 19 months

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