A bond has a face value of 1000 with a time to maturity ten


A bond has a face value of $1,000 with a time to maturity ten years from now. The yield to maturity of the bond now is 10%.

a) What is the price of the bond today, if it pays no coupons?

b) what is the price of the bond if it pays annual coupons of 10%?

c) What is the price today if pays 8% coupon rate semi-annually?

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Operation Management: A bond has a face value of 1000 with a time to maturity ten
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