You have a 4-year coupon bond that pays semiannual interest. The coupon rate is 8%...
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Accounting
You have a 4-year coupon bond that pays semiannual interest. The coupon rate is 8% and the par value is 100.
Can you construct a synthetic equivalent of this bond? Be explicit and show your cash
flows.
Price this coupon bond assuming the following term structure (represented by bid/ask prices
at annual frequency) and by using a linear interpolation to discount semi-annual cashflows: B1 5 0:90=0:91; B2 5 0:87=0:88; B3 5 0:82=0:83; B4 5 0:80=0:81
What is the 132 FRA rate?
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