Suppose we have a simple bond which has exactly 1.5-years until maturity. The bond pays...
80.2K
Verified Solution
Link Copied!
Question
Finance
Suppose we have a simple bond which has exactly 1.5-years until maturity. The bond pays interest semi-annually (the coupon is broken into 2 payments per year, 1 every six months). The bonds par value is $100. Finally, the bonds coupon rate is 4%. Below are zero-rates over the next 2 years: .5 year zero rate = 4.0% compounded continuously 1 year zero rate = 4.8% compounded continuously 1.5 year zero rate = 5.4% compounded continuously What is the bond's price, via properly discounting all future cash flows of the bond at the corresponding zero rates? Group of answer choices $95.92 $96.91 $97.93 $99.94 $101.90 $102.95
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.