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Calculate the price of the following bonds with face value $100, yield to maturity 7% and coupon interest 10% I. A perpetual bond II. A

Calculate the price of the following bonds with face value $100, yield to maturity 7% and coupon interest 10%

I. A perpetual bond

II. A 5- year zero coupon bond

III. A 5-year coupon bond

IV. A 5-year coupon bond with semiannual coupon payment

Similarly calculate the price with yield to maturity of 8%, 9% and 10%. What is the current yield of #III bond at 10% YTM?

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