Principles of Corporate Finance
Principles of Corporate Finance
13th Edition
ISBN: 9781260465099
Author: BREALEY, Richard
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 3, Problem 19PS

Spot interest rates and yields Look again at Table 3.6. Suppose the spot interest rates change to the following downward-sloping term structure: r 1 = 4.6 % , r 2 = 4.4 % , r 3 = 4.2 % and r 4 = 4.0 % . Recalculate discount factors, bond prices, and yields to maturity for each of the bonds listed in the table.

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Principles of Corporate Finance

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