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Unformatted text preview: Time Spot Rate 0.5 1.0% 1.0 1.5% 1.5 2.0% 2.0 2.4% 2.5 2.7% 3.0 3.0% Calculate the price of a 3 year bond which matures for 10,000 and pays annual coupons of 300. 4. You are given the following spot interest rates: Time Spot Rate 0.5 1.0% 1.0 1.5% 1.5 2.0% 2.0 2.4% 2.5 2.7% 3.0 3.0% One year from now, Bill will receive a payment of 100,000. Bill intends to invest that payment for the following two year period. Using the above the spot interest rates and the implied forward interest rates, determine the expected value of this payment at the end of 3 years....
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 Spring '08
 Staff
 Math, Finance, Dividend, Forward contract

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