FIN203: Essentials of Financial Management Question 1 You are looking at the valuation of some risk-free government bonds. It has been observed that the current 3-year discount factor for risk-free cash flows is 0.68. All bonds are assumed to have a par value of $100 and all cash flows occur at the end of the year. (a) Propose the fair price for a zero-coupon bond that matures in exactly 3 years. (b) Your friend makes the f
FIN203: Essentials of Financial Management Question 1 You are looking at the valuation of some risk-free government bonds. It has been observed that the current 3-year discount factor for risk-free cash flows is 0.68. All bonds are assumed to have a par value of $100 and all cash flows occur at the end of the … Read more