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31 December, 17:35

How do you calculate the price of a coupon bond from the prices of zero-coupon bonds

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  1. 31 December, 18:18
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    To calculate the price you should pay for a zero-coupon bond, you'll:

    1. - divide your required rate of return by 100 to convert it toa a decimal.

    2. - add 1 to the required rate of return as a decimal

    and last, raise the result to the power of the number of years until the bond matures.
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