6 Assume an efficient capital market. Consider bonds A att = 0. The nominal value of each of the bonds is €1000,0. The b
Posted: Mon Mar 21, 2022 4:34 pm
- 6 Assume An Efficient Capital Market Consider Bonds A Att 0 The Nominal Value Of Each Of The Bonds Is 1000 0 The B 1 (58.33 KiB) Viewed 40 times
6 Assume an efficient capital market. Consider bonds A att = 0. The nominal value of each of the bonds is €1000,0. The bonds have no default risk. The maturity is 3 years and the coupon is 0.00% (the bonds are 'zero coupon bonds"). The 2-year spot rate (r2) is 2.0% and the forward rate for the third year (213) is 6.0%. 1.0p Calculate the price of one bond A. Round your answer to two decimals (e.g. enter €1234.567 as 1234.57) Answer