Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
For a 1 year tbill..
with a coupon of 0.75
n = 1
face value = 98.503
market price = 98.434
what is the yield of the bond
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Follow-up Question
Does the formula change when you change the value of n given that you use continuous compounding.
For example with a 2 year tbill....
n = 2
coupon = 1
ask price = 96.964
bid price = 96.904
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