Question: Can you help me with this question: 18.Consider a bond with a coupon rate of 5%, face value $100,000 and twenty year maturity. a)What is
Can you help me with this question:
18.Consider a bond with a coupon rate of 5%, face value $100,000 and twenty year maturity.
a)What is its price if the yield-to-maturity is 5%?What about 6%?4%?Calculate these as explained in #17, or use the bond formula in the Lecture Notes.
b)Repeat the three parts of a) but for a thirty-year maturity.
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