Annual continuously compounded spot rates: s1=5%, s2=5.1%, s3=5.2%,
Bond: 1.5 year, Face value=100, semi annual coupon, 6%.
calculate the bond price.
can anyone help with this? thank you~
the below pic is my solution which is incorrect.
Check your exponents; you have the wrong interest rates for periods 2 & 3.
thank you!
