Suppose that the 6 month and 12 month continuously compounded LIBOR rates are 5% and 6% respectively.
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Suppose that the 6 month and 12 month continuously compounded LIBOR rates are 5% and 6% respectively. A bond that has a time to maturity of 18 months and pays a coupon of 8% per annum with semi-annual payments has a price of $97 and a face value of $100.
What is the 1.5 year annualized zero rate with continuous compounding?
Expert Answer:
ANSWER To calculate the 15 year annualized zero rate with continuous compounding we can use th... View the full answer
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