Question: PROBLEM 6 You are given the following information about five bonds, each of which has a face value of 4000 and a redemption value of

PROBLEM 6 You are given the following information about five bonds,

PROBLEM 6 You are given the following information about five bonds, each of which has a face value of 4000 and a redemption value of 4000. Bond A: 1-year zero coupon bond that has a price of 3599.12 Bond B: 2-year vero coupon bond that was a price of B . Bond C: 3-year zero coupon bond that has a price of 3507.12 Bond D: 4-year zero coupon bond that has a price of 3270.04 Bond E: 4-year 7% annual-coupon bond that has a price of 4236.62 Problem 6 continued on next page... 2 MATH3801 Dr. Nordia Thomas - Problem Paper #1 Problem 6 (continued) a. Find B. [12] 151 b. Plot the yield curve

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