Question: use excel and show formulas please Consider the following two bonds: Bond A Term to maturity: 10 years from today Face value: $1,000 Annual Coupon
Consider the following two bonds: Bond A Term to maturity: 10 years from today Face value: $1,000 Annual Coupon rate: 6% Number of payments per year: 2 Bond B Term to maturity: 20 years from today Face value: $1,000 Annual Coupon rate: 9% Number of payments per year: 2 Compute the price for each bond. The current YTM for each bond is 8%. Then make a table comparing the bond prices when the YTM varies from 1%, 2% ... 17%
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