Consider the bonds below, all of which pay coupons semi-annually and so in each case the...

 

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Consider the bonds below, all of which pay coupons semi-annually and so in each case the yield to maturity is a semi-annual APR. As- sume that each bond has face value equal to $1,000 and that in each case a coupon has just been paid so that accrued interest is zero. ID Years to maturity Coupon YTM A 0.5 B 1.0 C 1.5 0.00% 0.5% 4.00% 2.5% 8.00% 4.5% i. What are the prices of the three bonds? Explain the steps in your pricing analysis as you perform them. Consider the bonds below, all of which pay coupons semi-annually and so in each case the yield to maturity is a semi-annual APR. As- sume that each bond has face value equal to $1,000 and that in each case a coupon has just been paid so that accrued interest is zero. ID Years to maturity Coupon YTM A 0.5 B 1.0 C 1.5 0.00% 0.5% 4.00% 2.5% 8.00% 4.5% i. What are the prices of the three bonds? Explain the steps in your pricing analysis as you perform them.