Determine the at-par yield rate

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1. Find the price of a 12 year bond with coupons paid 3 times per year. The face value is $622 and the redemption value is $618. The coupon rate is a nominal annual rate of 6.4% compounded 3 times per year and the yield rate is a nominal annual rate of 6.2% compounded 3 times per year.

2. The forward rate for year 1 is 4%. The forward rate for year 2 is 3.5%. The forward rate for year 3 is 4.8%. Determine the At-Par Yield rate (swap rate). Hint: you will need to determine the spot rates first or rewrite your swap rate formula in terms of forward rates.) Round your answer to 4 significant digits

Reference no: EM131937599

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