Examples 111What is the current market price of a US Treasury strip that matures in exactly 5 years and has a face value of $ 1000, using an annual interest rate of R=7.5 % (annual compounding)?
What is the annual interest rate on a US Treasury strip that pays $1000 in exactly 7 years and is currently selling for $ 591.11 (annual compounding)?
What is the market price of a US Treasury bond that has a coupon rate of 9% p.a., a face value of $1000, and matures exactly 2 years from today if the interest rate is 10% compounded annually?
Multi-period deterministic cash flows: FI securities - Valuation