Question

In: Finance

The following table lists the discount factors implied by the government spot curve for the next...

The following table lists the discount factors implied by the government spot curve for the next 4 years:

Time (years) Discount factor
1 0.951
2 0.875
3 0.802
4 0.714

What would be the price of a 4 year 3.98% coupon bond with a Z spread of 89 bps, per $100 of par value?

Enter answer in percents.

Correct answer: 82.1536

Solutions

Expert Solution

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

jeff jeffy answered 2 hours ago
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