Question: Using the semi-annually compounded yield curve in Table 2.4, price the following securities: (a) 5-year zero coupon bond (b) 7-year coupon bond paying 15% semiannually
(a) 5-year zero coupon bond
(b) 7-year coupon bond paying 15% semiannually
(c) 4-year coupon bond paying 7% quarterly
(d) 3 1/4-year coupon bond paying 9% semiannually
(e) 4-year floating rate bond with zero spread and semiannual payments
(f) 2 1/2-year floating rate bond with zero spread and annual payments
(g) 5 1/2-year floating rate bond with 35 basis point spread with quarterly payments
(h) 7 1/4-year floating rate bond with 40 basis point spread with semiannual payments
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