Suppose we have a simple bond which has exactly 1.5-years until maturity. The bond pays...
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Suppose we have a simple bond which has exactly 1.5-years until maturity. The bond pays interest semi-annually (the coupon is broken into 2 payments per year, 1 every six months). The bonds par value is $100. Finally, the bonds coupon rate is 4%. Below are zero-rates over the next 2 years: .5 year zero rate = 4.0% compounded continuously 1 year zero rate = 4.8% compounded continuously 1.5 year zero rate = 5.4% compounded continuously What is the bond's price, via properly discounting all future cash flows of the bond at the corresponding zero rates? Group of answer choices $95.92 $96.91 $97.93 $99.94 $101.90 $102.95
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