Homework Answers
1/(1+r0.5/2)=0.95
1/(1+r1/2)^2=0.92
1/(1+r1.5/2)^3=0.86
1/(1+r2/2)^4=0.84
Price of 2 year
bond=500000*1*4%/2*(0.95+0.92+0.86+0.84)+500000*0.84=455700.00000
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