Find the price of a 3 year bond paying an annual coupon of 13%. Assume a face

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Find the price of a 3 year bond paying an annual coupon of 13%. Assume a face value of $1,000 and assume the zero-coupon year curve is as follows: ( All rates are expressed in annual compounding in this question)

Maturity	Rate
1 year	8.8%
2 year	9.9%
3 year	11.5%

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Principles Of Finance

ISBN: 9798439388899

1st Edition

Authors: Julie Dahlquist, Rainford Knight

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Posted Date: May 25, 2023 02:33 AM

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Find the price of a 3 year bond paying an annual coupon of 13%. Assume a face

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To find the price of a 3year bond paying an annual coupon of 13 we need to calculate the present value of the bonds cash flows which include the annua... View the full answer

Principles Of Finance

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