Suppose the prices of one-year, two-year, and three-year zero
coupon bonds each with a par value of $100 are $90,$80, and $70,
respectively.
A dealer has a three-year bond in her inventory with 10% coupon rate and par value of $1000. Use the given information on zero-coupon bonds to value this bond.
A dealer has a three-year bond in her inventory with 10% coupon rate and par value of $1000. Use the given information on zero-coupon bonds to value this bond.
No comments:
Post a Comment