Suppose that there is a bond with 12 years left to maturity. The face value of the bond is $1,000. Coupon rate is 15%, and YTM is 12%. Coupons are paid semiannually. What is the price that you are willing to pay?
 

b) Suppose that there is a bond with 16 years left to maturity. The face value of the bond is $1,000. Coupon rate is 15%, and YTM is 9%. Coupons are paid semiannually. What is the price that you are willing to pay?
 

c) Suppose that there is a bond with 9 years left to maturity. The face value of the bond is $1,000. Coupon rate is 9%, and YTM is 15%. Coupons are paid semiannually. What is the price that you are willing to pay?

Answer rating: 100% (QA)

Answer To calculate the price you are willing to pay for each bond we can use the formula for the p... View the full answer