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Business, 17.04.2020 01:53 38amica

Determine the value of an 3.00% coupon 3-year to maturity bond that is callable at par assuming that the issue will be called if the price exceeds par, i. e., the bond is no longer call-protected. Assume that volatility of interest rates is 10%. [Show calibration step results and valuation results] (20 points)

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Determine the value of an 3.00% coupon 3-year to maturity bond that is callable at par assuming that...
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