It is expected that in exactly three years, a 12-month pure discount bond with a face value
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It is expected that in exactly three years, a 12-month pure discount bond with a face value of $5,000 will sell for $4,900. If 4-year spot (zero) rates are 3.00% p.a., based on pure expectation theory, what is the current 3-year spot rate?
Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
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