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that formula is just discounting the cash flows of the bond.
But forget that, It’s a simple TVM calculation.
FV 100
IY 7
N 2
PMT 6
CPT PV = 98.19
so thats the price of the gov’t bond. Since a corporate has credit risk, it must be priced lower then an otherwise equivalent gov’t bond hence B is the only option. |
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发表于 2013-4-7 03:28
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