A 20-year 1000 par value bond pays 4 annual coupons the


A 20-year 1000 par value bond pays 4% annual coupons. The bond is priced to yield an annual effective rate of 5%. The continuous compounded risk free rate of interest is 4%. Calculate the delivery price of the bond for a three year forward contract with delivery after the third coupon payment.

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Financial Management: A 20-year 1000 par value bond pays 4 annual coupons the
Reference No:- TGS01034540

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