Question: We know that the 6 month zero bond price is $94.9; the 1 year coupon bond price is $90.0 with semi-annual coupon rate 4%; the
We know that the 6 month zero bond price is $94.9; the 1 year coupon bond price is $90.0 with semi-annual coupon rate 4%; the 1.5 year coupon bond price is $96.0 with semi-annual coupon rate 8%. Note that the face value of the bonds are $100.
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To find the annual 6 month zero rate we can use the formula for calculating the price of a zer... View full answer
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