Question: III. Bootstrapping Consider two zero bonds and one coupon bond (with the coupon being paid once a year) given in the following table. The face

III. Bootstrapping Consider two zero bonds and one coupon bond (with

III. Bootstrapping Consider two zero bonds and one coupon bond (with the coupon being paid once a year) given in the following table. The face value of all three bonds equals 1000. Bond Coupon rate p.a. Price Maturity A 0% 932.93 1 B 9% 1003.12 2 0% 769.18 3 (a) Calculate the discount factors for all three maturities. (b) What's the value of a bond with a maturity of 3 years paying an annual coupon of 7.5% with a face value of 1000

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