Question: The function s ( t ) = 0.025 + 0.006 t gives the effective annual rate of a zero coupon bond of maturity t ,
The functions(t) = 0.025 + 0.006tgives the effective annual rate of a zero coupon bond of maturityt, withtin years. Find the price of a 2 year coupon bond with semiannual coupons of 9.5% and a face/redemption value of$200,000.
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