Question: Problem 5: (15 points) Compute the prices and current yields of the following bonds Issuer Bond 3 oday 0% Bond 1 Today 6% Bond 2

Problem 5: (15 points) Compute the prices and current yields of the following bonds Issuer Bond 3 oday 0% Bond 1 Today 6% Bond 2 Settlement oday Coupon rate 4% Frequency coupon payment Semi- Annually 4 years $1,000 7% annually Zero-coupon Term to Maturity 6 years $1,000 5% 15 years Face value $1,000 Yield to Maturity Bond Price Bond Current Yield 6%

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