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Category > Business & FinancePosted 13 Oct 2017My Price5.00
The term structure is at with all spot rates equal to 20%. You observe a two-year zero-coupon bond. The first derivative of the bond price with...
 The term structure is at with all spot rates equal to 20%. You observe a two-year zero-coupon bond. The first derivative of the bond price with respect to the yield, dP/dy, is -625.Â
What is the price of the bond?Â
a) $312.50Â
b) $375.00Â
c) $562.50Â
d) There is enough information to tell, but none of the above alternatives is correct.Â