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Question The current 1 year spot rate

Question : Question The current 1 year spot rate : 5634

Question

The current 1 year spot rate is 4%, 1 year forward rate for lending from t=1 to t=2 is 5%, for lending from t=2 to t=3 is 6%. What's the value of a 3-year annual pay bond with a 5% coupon and a par value of $1000?

 

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Finance 1 Year Ago 131 Views
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