Question: Problem 2 a. [2pts) Suppose the current spot rates are: Spot rates rate Time to maturity (years) 10.5 1.6% 0.5 1.8% 1.9% 1.5 2.0% What
Problem 2 a. [2pts) Suppose the current spot rates are: Spot rates rate Time to maturity (years) 10.5 1.6% 0.5 1.8% 1.9% 1.5 2.0% What is the price of the 2-year coupon bond paying a coupon rate of 1% per year semiannually! and a face value of $100. b. [2pts) Suppose the current spot rates are: Spot rates rate Time to maturity (years) 10.25 2.0% 0.25 2.4% 0.5 10.75 2.8% 0.75 3.2% 10.5 I1 What is the price of the 1-year coupon bond paying a coupon rate of 8% per year quarterly and a face value of $100
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