Question: can you solve with showing excel functions so I can understand. thank you! 13. You buy a 10 years zero coupon bond with par value
can you solve with showing excel functions so I can understand. thank you!
13. You buy a 10 years zero coupon bond with par value of $1,000 in the morning. The interest rate in the bond market is equal to 11% for all maturities. What is the price of the bond? During the day rates rise to 19%. If you were selling the bond at night, what would be the bond value? How would your results be different if the maturity of the bond was equal to two years
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