Question: PLEASE HELP ASAP The YTM is equal to 6.00%. We have the following bonds with a nominal value equal to 1 000 PLN: 1-year coupon

PLEASE HELP ASAP

The YTM is equal to 6.00%. We have the following bonds with a nominal value equal to 1 000 PLN:

  • 1-year coupon bond with coupon rate equal to 4.0% and coupon payable four times a year,
  • 5-year coupon bond with coupon rate equal to 7.0% and coupon payable once a year, to redeem bonds remains 16 months,
  • 7-year zero-coupon bond.
  1. Calculate the bond prices, (17 points)
  2. Which bonds are worth buying if their prices are equal to 975 PLN, 1 050 PLN and 660 PLN, respectively? (3 points)

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