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Price of ZCB= Amount/ (1+r)n where r is Yield to maturity rate , n is periods, amount = face value
1) Hence price of A = 1000/(1.05)1= $952.38
Price of bond B = 1000/(1.0585)2=$944.73
2)The zero coupon bond yield of 1 year bond is 5% and zero coupon yield of 2 year bond is 5.85%
3) and 4) cant be answered as neither the Yield to maturity is given nor the price is given of Bond C
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please show how to calculate with financial calculator. Question 3. Jones Corporation has zero coupon bonds on the m...
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please show how to calculate with financial calculator.
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