Zero coupon bonds with face value $100 , redeemable at par, are priced as below: a) Bonds
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Question:
a) Bonds redeemable in exactly 1yr are priced at $98
b) Bonds redeemable in exactly 2yr are priced at $93
c) Bonds redeemable in exactly 2yr are priced at $89
d) Bonds redeemable in exactly 2yr are priced at $85.50
Find the yield to maturity of a bond redeemable at 103%of the face value in 4years with annual coupons of 5%
Related Book For
Intermediate Financial Management
ISBN: 9780357516669
14th Edition
Authors: Eugene F Brigham, Phillip R Daves
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