A $3,000,000,000 bond with coupon j2 = 15% maturing in 12 years can be redeemed after 4 years at 108 and after 8 years a
Posted: Sun Jul 03, 2022 3:44 pm
A $3,000,000,000 bond with coupon j2 = 15% maturing in 12 years can be redeemed after 4 years at 108 and after 8 years at 105. Calculate the bond price guarantees investors get a minimum yield of 16%. Also calculate the maximum yield bias obtained by investors