• Your company is working fine, and you just had a great idea for a new exciting project. You are planning to issue bonds with the following characteristics:
• Par: €1000
• Time to maturity 15 years
• Coupon rate 8%
• Semiannual payments
• The price of the bonds are going to be different depending on the Yield to maturity, the expectations are:
• 25% Chances YTM:4%
• 35% Chances YTM:5,5%
• 40% Chances YTM:7%

Calculate the price of the bond for each of the cases. 

Answer rating: 100% (QA)

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