Index of [finpko.ku.edu]
The 3-year risk-free interest rate is 3.7% with continuous compounding. From equation (4.10), the value of the FRA is therefore . or $4,474.69. Problem 4.16. A 10-year, 8% Treasury coupon bond currently sells for $90. A 10-year, 4% coupon Treasury bond currently sells for $80. What is the 10-year … ................
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