You have a two-year zero coupon bond that pays $250 which price today is $173.61. You have a two year coupon bond with a principal value of $100 and coupon rate of 15%. The spot rate for 1 year (r1) is 10%. What is the price of the coupon bond today?

Answer rating: 100% (QA)

Zero coupon bond pays 250 at the end of 2 years Price today of zero coupo... View the full answer