A 10-year 8 coupon bond currently sells for 90 a 10-year 4, Ask an Expert

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A 10-year 8% coupon bond currently sells for $90. A 10-year 4% coupon bond currently sells for $80. What is the 10-year zero rate?

(Hint: Consider taking a long position in two of the 4% coupon bonds and a short position in one of the 8% coupon bonds.)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91991524

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