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Hull 6th Question 4.27.d
I'm stumped by the logic of my peers on this question. Specifically, my peers have taken the view that the 7% coupon can be jammed into the equation that was used to solve for the coupon on the 8% bond (T=2). I just don't see how this can be done...Is there anyone out there able to offer some insight into the approach to this?Thanks in advance.