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Business, 07.05.2021 01:00 raveransaw

Suppose that 6-month, 12-month, 18-month, and 24-month zero rates continuously compounded are 0.03, 0.03,0.02,and 0.03 per annum, respectively. Estimate the cash price of a bond with a face value of $1000 that will mature in 24 months pays a coupon of $88 per annum semiannually. Please write down the numerical answer with two decimal points and no dollar sign.

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Suppose that 6-month, 12-month, 18-month, and 24-month zero rates continuously compounded are 0.03,...
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