Assume the current Treasury yield curve shows that the spot rates six months, one year, and one and a half years are 1%, 1.1% and 1.3%, all quoted as semiannually compounded APRs. What is the price of a $1,000 par, 4% coupon bond maturing in one and a half year s (the next coupon is exactly 6 months from now)? The price of this bond is $_____________________ (Round to the nearest cent)

Assume the current Treasury yield curve shows that the spot rates six months, one year, and one and a half years are 1%, 1.1% and 1.3%, all quoted as semiannually compounded APRs. What is the price of a $1,000 par, 4% coupon bond maturing in one and a half year s (the next coupon is exactly 6 months from now)? The price of this bond is $_____________________ (Round to the nearest cent)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 4P

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