A. one-year zero coupon bond that pays $1,000 which price today is $909.09. The two-year...
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A. one-year zero coupon bond that pays $1,000 which price today is $909.09. The two-year coupon bond with a principal value of $2,000 and coupon rate of 10%. Its price is $1,845.334. Determine what is the term structure of interest rates for years 1 and 2.
B.Compute the duration for the coupon bond and for the zero coupon bond and explain how to compute the yield to maturity (only set the equation in the last case) for the coupon bond
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