Find the price of the 8% coupon bond that matures 16 months from now if zero rates for the next 2 years are given by r(t)=0.07+0.01t, where 0

Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter2: Exponential, Logarithmic, And Trigonometric Functions
Section2.1: Exponential Functions
Problem 2YT
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Find the price of the 8% coupon bond that matures 16 months from now if

zero rates for the next 2 years are given by r(t)=0.07+0.01t, where 0<t<2, t is measured in

years can be any real number. Report your answer up to the 4th decimal digit

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