Question: Use the following information to answer the question(s) below. Consider the following four corporate bonds that are annual-paid coupon: Bond #1 #2 #3 #4 Coupon
Use the following information to answer the question(s) below.
Consider the following four corporate bonds that are annual-paid coupon:
| Bond | #1 | #2 | #3 | #4 |
| Coupon Rate | 8% | 7% | 9% | 9% |
| Years to Maturity | 5 | 5 | 8 | 5 |
| Face value | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 |
- If the YTM of these bonds is 9%, please calculate the PV of each bond.
- Which bond is traded at discount and which bond is traded at premium?
- If the price of bond #2 is $1,200, what is the YTM of #2?
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