Multiple Choice
Assuming annual compounding,the prices of a one-year 4% coupon bond and a two-year 5% coupon bond are $101 and $99,respectively.Assume coupons are paid annually.The fair price of a two-year 6% coupon bond will be
A) $99.86
B) $100.11
C) $100.57
D) $100.87
Correct Answer:
Verified
Correct Answer:
Verified
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