Homework - JOHNSON GRADUATE SCHOOL OF MANAGEMENT Cornell...

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JOHNSON GRADUATE SCHOOL OF MANAGEMENT Cornell University NBA–555: Fixed Income Securities and Interest Rate Options Professor Robert Jarrow Homework (Not Graded) For Self Study
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QUESTIONS 1. a. Given . ) 0 , 0 ( f ) 1 , 0 ( f ) 2 , 0 ( f ) 3 , 0 ( f compute , 96154 . 92456 . 88053 . 83860 . ) 1 , 0 ( P ) 2 , 0 ( P ) 3 , 0 ( P ) 4 , 0 ( P = b. Using question 1(a), compute the time 0 value of a coupon bond with cash flows: time cash flow $5 $5 $100 0 1 2 3 4
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