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Chapter 11: Expectations theory

  • Thread starter Phani Vasantarao
  • Start date
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Phani Vasantarao

Member
Hello,

It seems to me that the example on page 11, chapter 11 is using the wrong formula to determine the price of a 5-year zero coupon bond:

"The price of the 5-year zero-coupon bond today is: 100/(1.05^10)"

Am I being dense, or is this plain wrong?
 
Thanks, it is 10% annual but convertible half-yearly. I missed reading that small detail
 
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