Assume the current Treasury yield curve shows that the spot rates for six months, one year, and one and a half years are: 1%, 1.1%, and 1.3%, all quoted as semiannually compounded APRs. What is the price of a $1000 par, 4.75% coupon bond maturing in one and a half years(the next coupon is exactly six months from now)? The price of the next bond is $________
Assume the current Treasury yield curve shows that the spot rates for six months, one year, and one and a half years are: 1%, 1.1%, and 1.3%, all quoted as semiannually compounded APRs. What is the price of a $1000 par, 4.75% coupon bond maturing in one and a half years(the next coupon is exactly six months from now)? The price of the next bond is $________
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 4P
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Assume the current Treasury yield curve shows that the spot rates for six months, one year, and one and a half years are: 1%, 1.1%, and 1.3%, all quoted as semiannually compounded APRs. What is the price of a $1000 par, 4.75% coupon bond maturing in one and a half years(the next coupon is exactly six months from now)?
The price of the next bond is $__________
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