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Use the following spot yield curve: Time Spot Rate ½ 1.0% 1 1.5% 11/2 2.0% 2 2.5% 2½ 3.0% 3 4.0% 31/2 5.0% 6.0% I Calculate the price of a 2 year bond with a par value of 10,000. The bond matures for par and has a coupon rate of 5.0% convertible semi-annually. (Round your answer to 2 decimal places.)

Use the following spot yield curve: Time Spot Rate ½ 1.0% 1 1.5% 11/2 2.0% 2 2.5% 2½ 3.0% 3 4.0% 31/2 5.0% 6.0% I Calculate the price of a 2 year bond with a par value of 10,000. The bond matures for par and has a coupon rate of 5.0% convertible semi-annually. (Round your answer to 2 decimal places.)

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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Use the following spot yield curve: Time Spot Rate ½ 1.0% 1 1.5% 11/2 2.0% 2 2.5% 2½ 3.0% 3 4.0% 31/2 5.0% 6.0% I Calculate the price of a 2 year bond with a par value of 10,000. The bond matures for par and has a coupon rate of 5.0% convertible semi-annually. (Round your answer to 2 decimal places.)
Transcribed Image Text:Use the following spot yield curve: Time Spot Rate ½ 1.0% 1 1.5% 11/2 2.0% 2 2.5% 2½ 3.0% 3 4.0% 31/2 5.0% 6.0% I Calculate the price of a 2 year bond with a par value of 10,000. The bond matures for par and has a coupon rate of 5.0% convertible semi-annually. (Round your answer to 2 decimal places.)
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