The continuously comounded zero rates

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Reference no: EM131300693

The continuously comounded zero rates for 0.5 and 1 years are 4% and 5%, respectively. what is the price of a bond that pays $2 every six months and has 1 year to maturity ( Note: par value is $100)? Show your work

A. 109.27

B. 100.00

C. 98.99

D. 97.08

E. 1.96

Reference no: EM131300693

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