Question: Three bonds walk into a bar...Bond A has a face value of $1000, a maturity of 10 years. and a (nominal semi-annual) coupon rate of
Three bonds walk into a bar...Bond A has a face value of $1000, a maturity of 10 years. and a (nominal semi-annual) coupon rate of 1.50%. Bond A and Bond B have the same maturity, but Bond B has a face value of $1200.0. Bond A and Bond C have the same coupon rate but Bond C has a maturity of 15 years. The current (nominal semi-annual) yield rate is 3.50% and all three bonds are trading at the same premium/discount.
a) How much is the premium/discount of Bond A? b) What is the coupon rate of Bond B? c) What is the face value of Bond C?
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