Assume that a 1- year discount bond bond a with a face, Ask an Expert

Economics

Assume that a 1- year discount bond (bond A) with a face value of $1,000 is currently trading at PV = $943.40 offers YTM = 6%, and another 2-year discount bond (bond B) with identical risk features and face value is currently trading at $873.44 and offering YTM = 7%. According to the Expectations Theory, the next year anticipated price on the bond A is _______.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91341116

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