Question: 3. Consider three bonds, A, B, and C, each paying 7% semiannual coupons, and with face value of USD 1,000. Maturity for each bond is

3. Consider three bonds, A, B, and C, each paying 7% semiannual coupons, and with face value

of USD 1,000. Maturity for each bond is 30 years, 15 years and 5 years respectively.

a. For each bond, calculate the price (i) when the YTM is 10% and (ii) when the YTM is

15%. (3 POINTS)

b. What can you conclude about (i) the bond price yield relationship and (ii) the bond

price maturity relationship of the three bonds

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