Assuming annual compounding,the prices of a one-year 4% coupon bond and a two-year 5% coupon bond are $101 and $99,respectively.Assume coupons are paid annually.The fair price of a two-year 6% coupon bond will be
A) $99.86
B) $100.11
C) $100.57
D) $100.87
Correct Answer:
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Q1: Which of the following is not
Q3: Under a semi-annual compounding convention,the present
Q4: Assume that the risk-free zero rates are
Q5: The price of a three-year 5% coupon
Q6: Today's forward rate
Q7: The yield-to-maturity (ytm)is the
A)Return on the bond
Q8: If zero rates (i.e. ,discount rates)are the
Q9: The prices of a one-year 4% coupon
Q10: If zero rates (also known as
Q11: The one-year discount factor today is 0.95.You
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