5 Given a 3 year Bullet Corporate Bond with a 4% coupon that trades at...
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Accounting
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Given a 3 year Bullet Corporate Bond with a 4% coupon that trades at a 20 basis points credit spread compared with the Risk-Free Zero Coupon curve
Using the following Risk-Free Zero Coupon Curve.
1 year Risk-Free Zero Coupon Rate: 4%
2 year Risk-Free Zero Coupon Rate: 4.5%
3 year Risk-Free Zero Coupon Rate:5%
Compute the bond yield if the Risk-Free Zero Coupon Curve has moved 10 basis points upward
5,27%
4,97%
5,17%
4%
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