Once you get the discount curve Z(OT),you take another look at the data and find the following
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Question:
Once you get the discount curve Z(OT),you take another look at the data and find the following 1-yera bonds
Bond D:1-year bond with 8.00%coupon priced at $101.72
Bond E:1-year bond with 10.00% coupon priced at $106.12
Compute the fair values for this bonds with the discourt you found.
Are the fair values the same as the market (trade)prices above?
Bond B----
Bond E----
Related Book For
Systems analysis and design
ISBN: 978-0136089162
8th Edition
Authors: kenneth e. kendall, julie e. kendall
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