Pays a semiannual coupon equal to floating rate

Reference no: EM13754415

What is the price of a 0.75-year floating rate bond that pays a semiannual coupon equal to floating rate plus 2% spread? We know the following:

a. There is a zero coupon bond P_z(0, 0.25) = 99.70

b. There is a zero coupon bond P_z(0, 0.50) = 99.20.

c. There is a coupon bond paying 3% quarterly P(0, 0.75) = 101.7380.

Reference no: EM13754415

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Pays a semiannual coupon equal to floating rate : What is the price of a 0.75-year floating rate bond that pays a semiannual coupon equal to floating rate plus 2% spread? We know the following: a. There is a zero coupon bond Pz(0, 0.25) = 99.70 b. There is a zero coupon bond Pz(0, 0.50) = 99.20.

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