The prices of zero coupon bonds (all with face value of $1,000) maturing in years 1,...
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The prices of zero coupon bonds (all with face value of $1,000) maturing in years 1, 2, 3 are given below. Time to Maturity 1 Price 3 961.54 890.00 816.30 a) What's the price of a 3-year 6% annual coupon bond with face value equal to $1000? (15 points) b) What's the forward rate 2fl? (10 points) The prices of zero coupon bonds (all with face value of $1,000) maturing in years 1, 2, 3 are given below. Time to Maturity 1 Price 3 961.54 890.00 816.30 a) What's the price of a 3-year 6% annual coupon bond with face value equal to $1000? (15 points) b) What's the forward rate 2fl? (10 points)
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In the first place the price of the 3year 6 coupon bond is the present value of its future cash flow... View the full answer
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