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In: Finance

Find the prices of the eight bonds (each with par $100) and then, use these information...

Find the prices of the eight bonds (each with par $100) and then, use these information to construct the theoretical spot curve.

Maturity (years)

Coupon rate

YTM

Price

0.5

0

8%

1.0

0

8.3%

1.5

10%

8.5%

2.0

9.5%

9.2%

2.5

8%

8.5%

3.0

10.5%

9.6%

3.5

8.25%

8.35%

4.0

9.5%

10.6%

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jeff jeffy answered 2 years ago
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