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On 31st March 2016 you saw the following information about bonds.   Name of Security Face Value Maturity Date Coupon Rate Coupon Date(s) Zero Coupon 10,000 31st March 2026 N.A. N.A. t-Bill 1,00,000 24th June 2016 N.A. N.A. 10.71%GOTT 2026 100 31st March 2026 10.71 31st March 10%GOTT 2021 100 31st March 2021 10 31st March & 31st October   1A)    If the 10-year yield is 7.5%. What price the ZERO Coupon-Bond would fetch on 31st March 2016

On 31st March 2016 you saw the following information about bonds.   Name of Security Face Value Maturity Date Coupon Rate Coupon Date(s) Zero Coupon 10,000 31st March 2026 N.A. N.A. t-Bill 1,00,000 24th June 2016 N.A. N.A. 10.71%GOTT 2026 100 31st March 2026 10.71 31st March 10%GOTT 2021 100 31st March 2021 10 31st March & 31st October   1A)    If the 10-year yield is 7.5%. What price the ZERO Coupon-Bond would fetch on 31st March 2016

Essentials Of Investments
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
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On 31st March 2016 you saw the following information about bonds.

 

Name of Security

Face Value

Maturity Date

Coupon Rate

Coupon Date(s)

Zero Coupon

10,000

31st March 2026

N.A.

N.A.

t-Bill

1,00,000

24th June 2016

N.A.

N.A.

10.71%GOTT 2026

100

31st March 2026

10.71

31st March

10%GOTT 2021

100

31st March 2021

10

31st March & 31st October

 

1A)    If the 10-year yield is 7.5%. What price the ZERO Coupon-Bond would fetch on 31st March 2016

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