Question: Solve 1 a , b , c with full steps explanation and answer Maturity (years) Zero-Coupon YTM 1 5.80% 2 5.50% FIRE telestinata 3 5.20%

Solve 1 a , b , c with full steps explanation and answer
a. What is the price today of a 3-year default-free security with a face value of ( $ 1,000 ) and an annual coupon rate of

Maturity (years) Zero-Coupon YTM 1 5.80% 2 5.50% FIRE telestinata 3 5.20% 4 5.00% a. What is the price today of a 3-year default-free security with a face value of $1,000 and an annual coupon rate of 6% ? Show all your work. (3 MARKS) I 5 4.80% b. How will a 3-year default-free security with a face value of $1,000 and an annual coupon rate of 6% trade? You should be doing a calculation that will determine the type of trade (i.e. premium, discount, par). (4 MARKS) c. What is the YTM of a 3-year default-free security with a face value of $1,000 and an annual coupon rate of 6%? Show all your work. (5 MARKS) Focus H

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