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Homework answers / question archive / The Federal Government 2- year coupon bond has a face value of $1000 and pays annual coupons of $33

The Federal Government 2- year coupon bond has a face value of $1000 and pays annual coupons of $33

Accounting

The Federal Government 2- year coupon bond has a face value of $1000 and pays annual coupons of $33. The next coupon is due in one year. Currently the one and two year spot rates on Federal Government zero coupon bonds are 4% and 4.5%. What is the correct price for the coupon bond at time zero (immediately)?

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