Question: plz help Consider three 5 year bonds; each bond has a face value of $100. All bonds mature on the same date. All bonds pay

plz help

Consider three 5 year bonds; each bond has a face value of $100. All bonds mature on the same date. All bonds pay annual coupons at the same point in time. The coupons, current prices, and yields (continuously compounded) for the three bonds are: Bond COUPON PRICE $100.954 10 6 B YIELD (%) 9.30349% YTMB 9.34903% PB $70.280 C 2 Compute price on Bond B (PB) ? [Hints: Look at the cash flows of three bonds. How many quantities of bond B you need to replicate the cash flows of Bond A and Bond B? Then compute the price of Bond B. For (part B) computing continuous compounding yield, compute the yield assuming annual compounding and then use the equivalent continuous compounding yield.] Question 7 10 pts

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