Compute the price and the yield (IRR) of a BB 3-year bond with a face value of €1,000 that pays an annual coupon of 5%. The spot interest rates are OR1=3%, OR2=3.6%, OR3 =4.9%, OR4=5.3% and BB bonds...

Compute the price and the yield (IRR) of a BB<br>3-year bond with a face value of €1,000 that<br>pays an annual coupon of 5%. The spot<br>interest rates are OR1=3%, OR2=3.6%, OR3<br>=4.9%, OR4=5.3% and BB bonds pay a risk<br>premium of 1,25% above AAA bonds. The<br>bond's repayment is at par.<br>

Extracted text: Compute the price and the yield (IRR) of a BB 3-year bond with a face value of €1,000 that pays an annual coupon of 5%. The spot interest rates are OR1=3%, OR2=3.6%, OR3 =4.9%, OR4=5.3% and BB bonds pay a risk premium of 1,25% above AAA bonds. The bond's repayment is at par.

Jun 11, 2022

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Compute the price and the yield (IRR) of a BB 3-year bond with a face value of €1,000 that pays an annual coupon of 5%. The spot interest rates are OR1=3%, OR2=3.6%, OR3 =4.9%, OR4=5.3% and BB bonds...

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