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Compute the price of the following bonds: Bond A: Coupon bond, 4% coupon paid semi-annually, with maturity of 14 years. Bond B: Zero coupon bond

Compute the price of the following bonds:

  • Bond A: Coupon bond, 4% coupon paid semi-annually, with maturity of 14 years.
  • Bond B: Zero coupon bond with maturity of 7 years.
  • Bond C: Coupon bond, 7.75% coupon paid yearly, with maturity 10 years.

Assume that all 3 bonds have the same nominal: 1000 euro.

Your required rate of return is the same for each bond and equal to 6%.

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