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Business, 22.03.2021 16:30 Osmin

The YTM on 1-year zero coupon bonds is 5% and the YTM on 2-year zero coupon bonds is 6%. The YTM on 2-year maturity coupon bonds with coupon rates of 15% (paid annually) is 5.8%. Assume the face value of bonds is $1,000. What should be the price of this 2-year maturity coupon bond, if we use no-arbitrage pricing approach based on the zero-coupon bonds

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The YTM on 1-year zero coupon bonds is 5% and the YTM on 2-year zero coupon bonds is 6%. The YTM on...
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