Question: 195 Using Present Value Formulas to Value Known Cash Flows (14 points) Suppose you want to know the price of a three-year 10% coupon Treasury

195 Using Present Value Formulas to Value Known Cash Flows (14 points) Suppose you want to know the price of a three-year 10% coupon Treasury bond that pays interest annually, a. You have been told that the yield to maturity is 8%. What is the price (per 51000 of face value)? (8 points) b. Now you have been told that the yield to maturity is 10% per year. What is the price? Could you have guessed the answer without calculating it? (6 points)

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