1. You want to price a 2-year Treasury bond with a principal of $1,000 and coupon rate of 4% paid semi-annually. What is the theoretical price using following spot rates Maturity Spot Rate 0.5 1 1.5 2 4.10% 5.50% Calibri (Bod-11) A A A 6.20% BI U ay AEE Styles 6.60%

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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1. You want to price a 2-year Treasury bond with a principal of $1,000 and coupon
rate of 4% paid semi-annually.
What is the theoretical price using following spot rates
Maturity Spot
Rate
0.5
1
1.5
2
4.10%
5.50%
6.20%
6.60%
Calibri (Bod - 11
BI U aly
A A
- Styles
Transcribed Image Text:1. You want to price a 2-year Treasury bond with a principal of $1,000 and coupon rate of 4% paid semi-annually. What is the theoretical price using following spot rates Maturity Spot Rate 0.5 1 1.5 2 4.10% 5.50% 6.20% 6.60% Calibri (Bod - 11 BI U aly A A - Styles
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