7.12a Suppose the yields to maturity of 6-month, 12-month, 18-month and 24-month zero-coupon bonds are, respectively, 10%, 8%, 7% and 6% per annum convertible semiannually. (a) What is the 2-year par yield?
7.12a Suppose the yields to maturity of 6-month, 12-month, 18-month and 24-month zero-coupon bonds are, respectively, 10%, 8%, 7% and 6% per annum convertible semiannually. (a) What is the 2-year par yield?
Chapter5: The Cost Of Money (interest Rates)
Section: Chapter Questions
Problem 7PROB
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7.12a Suppose the yields to maturity of 6-month, 12-month, 18-month and 24-month zero-coupon bonds are, respectively, 10%, 8%, 7% and 6% per annum convertible semiannually.
(a) What is the 2-year par yield?
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