Suppose that 6 month, 12 month, 18 month, 24 month, and 30 month Zero rates are 4%, 4.2%, 4.4$, 4.6%, and 4.8% per annum with continuous compounding respectively. Estimate the cash price of a bond with a value of 100 that will mature in 30 month and pays a coupon of 4% per annum semiannually.
The bond pays $2 in 6, 12, 18 and 24 months, and $102 in 30 months. The cash price is?
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The expert estimates the cash price of a bond with a value.