Question: 1 . Consider a pure - discount bond that matures in exactly 1 2 years and pays $ 1 , 0 0 0 at maturity.

1. Consider a pure-discount bond that matures in exactly 12 years and pays $1,000 at maturity.
(a) What is the value of the bond if the discount rate is 6%?
(b) What is the value of the bond if the discount rate is 12%?
(c) Assuming the bond is priced at the value you calculated in (b), what is the bonds yield-to- 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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