Question: Financial Math problem 3. Bond A is an n-year bond with quarterly coupons and face value of 1,000. Bond B is an n 4-year zero-coupon

Financial Math problem

3. Bond A is an n-year bond with quarterly coupons and face value of 1,000. Bond B is an n 4-year zero-coupon bond. Both bonds have the same redemption amount and nominal yield rate convertible quarterly. The dierence between the price of bond B and the present value of the redemption amount for bond A is equal to 320.40, while the dierence of their squared values is 579,837.50. If, for bond A, the ratio of the 3-month bond rate to the 3-month yield rate, r i = 1.04167, nd the price of bond A.

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