Question: ( a ) A five - year bond has a yield to maturity of 1 % , a face value of $ 1 , 0

(a) A five-year bond has a yield to maturity of 1%, a face value of $1,000, and pays no
coupons. Compute its price today and its price in one year, assuming that its yield to
maturity stays at 1%.
Price today:
Price in one year:
(a) A five-year bond has a yield to maturity of 1%,

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