Lecture 10 Corrected Slide 24

Lecture 10 Corrected Slide 24 - 2 2 ar maturity: P =...

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So here’s how you price a bond (see page 403 of text and the Appendix to Chapter 16) e of bond; R = Coupon; F = Face value; i = Yield ar maturity: P = R/(1+i) + F/(1+i)
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Unformatted text preview: 2 2 ar maturity: P = R/(1+i) + R/(1+i) + F/(1+1) 2 3 3 ear maturity: P = R/(1+i) + R/(1+i) + R/(1+i) + F/(1+i) What if the bond has a four-year maturity?...
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This note was uploaded on 03/10/2010 for the course ECON 2 taught by Professor Taylor during the Fall '09 term at Georgetown KY.

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