Observations as at June 2030- USD 5.00% 1 yr zero/spot to June 2031 USD 6.00% 2...
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Observations as at June 2030- USD 5.00% 1 yr zero/spot to June 2031 USD 6.00% 2 yr zero to June 2032 USD 7.00% 3 yr zero to June 2033 USD 8.00% 4 yr zero to June 2034 What is the price in June 2030 of a three year 8% bond with flows of 8 (June 2031) and 8 (in June 2032) and 108 (in June 2033)? Observations as at June 2030- USD 5.00% 1 yr zero/spot to June 2031 USD 6.00% 2 yr zero to June 2032 USD 7.00% 3 yr zero to June 2033 USD 8.00% 4 yr zero to June 2034 What is the price in June 2030 of a three year 8% bond with flows of 8 (June 2031) and 8 (in June 2032) and 108 (in June 2033)?
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SOLUTION To calculate the price of the threeyear 8 bond in June 2030 we need to discount the future ... View the full answer
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