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6, suppose you want to know the price of a 10-year 5% coupon Treasury bond that pays interest annually. 1)You have been told that the
6, suppose you want to know the price of a 10-year 5% coupon Treasury bond that pays interest annually. 1)You have been told that the yield to maturity is 7%. What is the price (per $100 of face value)? the price? Could you have guessed the answer without calculating it? 7. Suppose you have the following information from the market for zero- coupon bonds. Price per $1 0 face value 0.943396 0.924556 Maturity Yield to Maturit 1 year 6.0% 2 years 4.0% 1)What would be the price of a 2-year 6% coupon bond paying interest annually? What would be its yield to maturity? 2)What would be the price of a 2-year 4% coupon bond paying interest ield to maturity? Why i discount bond
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