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a. Write down the future cash flows of a 10% coupon bond, with a face value of 1000 issued today with a maturity in 10

a. Write down the future cash flows of a 10% coupon bond, with a face value of 1000 issued today with a maturity in 10 years. b. Explain how to calculate the yield to maturity of the bond. What missing piece of information do you need in order to complete the calculation? How is the yield related to the coupon rate? c. Show that a bond that lasts for 5 years can be viewed as two linked perpetuities

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