Unah2007 Unah2007
  • 21-01-2020
  • Business
contestada

How do you calculate the price of a coupon bond from the prices of zero-coupon bonds

Respuesta :

mshurtado
mshurtado mshurtado
  • 21-01-2020

Answer:

To calculate the price you should pay for a zero-coupon bond, you´ll:

1.- divide your required rate of return by 100 to convert it toa a decimal.

2.- add 1 to the required rate of return as a decimal

and last, raise the result to the power of the number of years until the bond matures.

Explanation:

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