Find the prices of a 10% coupon bond with a face value of $1000 based on the
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Question:
Find the prices of a 10% coupon bond with a face value of $1000 based on the following maturities:
0.1225, 0.1175, 0.10, 0.0484 and 0.0713 and 12 years to maturity .
Calculate the interest rate for each price. Based on your results, what is the relationship between the interest rate and the price of the bond? What is the relationship between yield to maturity and interest rate?
Related Book For
Introduction to Operations Research
ISBN: 978-1259162985
10th edition
Authors: Frederick S. Hillier, Gerald J. Lieberman
Posted Date: