Florida International University FIN 4486 Exam 1 FIN 4486
Question 1 The prices of 1, 2, 3, and 4-year zero coupon government bonds are 95.42, 90.36, 85.16, and 78.81, respectively. What is the par coupon on a 4-year coupon bond selling at par? 5.02 % 5.43 % 5.81 % 6.06 % Question 2 The price of a 3-year zero coupon government bond is 85.16. The price of a similar 4-year bond is 79.81. What is the yield to maturity (effective annual yield) on the 4-year bond?
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florida international university fin 4486 exam 1 fin 4486