a) Assuming no coupons are due on the bond over the next two months, what is now the forward price of the bond? b) What is the marked-to-market value of the investor's short position?
a) Assuming no coupons are due on the bond over the next two months, what is now the forward price of the bond? b) What is the marked-to-market value of the investor's short position?
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter5: Bonds, Bond Valuation, And Interest Rates
Section: Chapter Questions
Problem 5MC: What would be the value of the bond described in Part d if, just after it had been issued, the...
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3. An investor enters into a forward contract to sell a bond in 3 months time at $100. After one month, the
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