Question: how much would you suggest microsoft to bid for a one year euro denominated zero coupon bond to be issued by the german republic with
how much would you suggest microsoft to bid for a one year euro denominated zero coupon bond to be issued by the german republic with a redemption par value of 100? The german republic has the highest credit rating possible, thhus its bonds can be considered rsk free. the dollar risk free rate is 0.77%, and the euro risk free rate is 0.32%
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