Question: Consider 2 securities with face value equal to 100. - One year pure discount bond selling at $93.69. One two year 7.86% discount bond selling
Consider 2 securities with face value equal to 100. - One year pure discount bond selling at $93.69. One two year 7.86% discount bond selling at $96.81. What is the two year zero coupon rate R(0,2)? Answer in percentage with 3 decimal digits accuracy. Example: 8.573. Consider 2 securities with face value equal to 100. - One year pure discount bond selling at $93.69. One two year 7.86% discount bond selling at $96.81. What is the two year zero coupon rate R(0,2)? Answer in percentage with 3 decimal digits accuracy. Example: 8.573
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
