Let y denote the continuously compounded yield to maturity, Financial Management

Let y denote the continuously compounded yield to maturity

Suppose that 1-year zero rate is 1% and 2-year zero rates is 2%. All rates are continuously compounded.Find the price of a risk-free bond with a face value of $100 that has an annual coupon rate of 3%.

Part 2: Let Y denote the continuously compounded yield to maturity for the bond in part 1. Write down an equation whose solution provides you the yield to maturity for the bond (you do not need to solve the equation)

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Financial Management: Let y denote the continuously compounded yield to maturity

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Financial Management: Let y denote the continuously compounded yield to maturity

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