0 votes
How do you calculate the price of a coupon bond from the prices of zero coupon bonds?

1 Answer

0 votes
Purchasers of zero coupon bonds earn interest by the bond being sold at a discount to its par value. A coupon -bearing bond pays coupons each period, and a coupon plus principal at maturity. The price of a bond comprises all these payments discounted at the yield to maturity.
Welcome our site: Hudson County's Premier Soccer Club
...