Question: Please show formulas instead of actual number answer. 1 Problem: Acompany has issued three bonds (Par Value $1,000) with the following data: What happends to

Please show formulas instead of actual number answer.

1 Problem: Acompany has issued three bonds (Par Value $1,000) with the following data: What happends to the bond prices as each bond approaches the maturity date? (assume similar bonds with 15 year maturity sell for 10% coupon rate and that this rate stays const over time) Market rate 10% Issue date Maturity Coupon rate Coupon Payment N 5-years ago 20 year bond 7% 70 15 Positive Values Today 15 year bond 10% 100 15 Positive Values 10-years ago 25 year bond 13% 130 15 Positive Values

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