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3. The U.S. Treasury issues two bonds: Issue C is a 3% coupon, 10-year bond issued at par. Issue Z is a zero-coupon, 10-year bond
3. The U.S. Treasury issues two bonds: Issue C is a 3% coupon, 10-year bond issued at par. Issue Z is a zero-coupon, 10-year bond with a yield to maturity of 3%. a. The opening price of Issue C is $1,000. What is the opening price of Issue Z, the zero-coupon bond? b. The day after the bonds are issued North Korea starts threatening to use their muclear weapons again. 10-year Treasury market yields rise to 4%. What are the prices of the two bonds now that required yields have changed
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