Question: 1 . Consider a pure - discount bond that matures in exactly 1 2 years and pays $ 1 , 0 0 0 at maturity.
Consider a purediscount bond that matures in exactly years and pays $ at maturity.
a What is the value of the bond if the discount rate is
b What is the value of the bond if the discount rate is
c Assuming the bond is priced at the value you calculated in b what is the bonds yieldto maturity?
If this could be explained in excel that would be awesome, I truly want to understand how to do this
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