contestada

Suppose you observe a one year zero coupon bond with par value $1000 is selling for $900, and a two year zero coupon bond with par value $1000 is selling for $850. In order for there to be no arbitrage opportunity, what must be the price of a two year, 10% coupon bond with par value $1000?

Respuesta :

cancinodavidq

Answer

The answer and procedures of the exercise are attached in a microsoft excel document.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

Ver imagen cancinodavidq

Otras preguntas