The price of a 1-year, zero-coupon, risk-free security with face value $1,000 is $961.54. The price...

 

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The price of a 1-year, zero-coupon, risk-free security with face value $1,000 is $961.54. The price of a 2-year, zero-coupon, risk-free security with face value $1,000 is $890.00. What is the price of a 2-year risk-free bond with face value of $1,000, coupon rate of 5% and annual coupons? The price of a 1-year, zero-coupon, risk-free security with face value $1,000 is $961.54. The price of a 2-year, zero-coupon, risk-free security with face value $1,000 is $890.00. What is the price of a 2-year risk-free bond with face value of $1,000, coupon rate of 5% and annual coupons?

Answer rating: 100% (QA)

To find the price of a 2year riskfree bond with a face value of 1000 a coupon rate of 5 and annual c... View the full answer