A bond makes coupon payments semiannually suppose its
A bond makes coupon payments semiannually. Suppose its coupon rate is 6%, the interest rate is 8%, and it matures in 4 years. What is the present value of the bond? How much will it be worth one year from now? How much will it be worth in 4 years?
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todayrsquos zero-rate curve is summarized in the table belowtime period years nbspnbspnbspnbspnbspnbsp zero rate pa05
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a bond makes coupon payments semiannually suppose its coupon rate is 6 the interest rate is 8 and it matures in 4 years
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