Ex. 4
Calculate the price of the following bond issues::
Bond face value	100	100	100
Coupon rate	3%	3%	3%
coupon payment	3	3	3
Maturity t	2	10	25
Annual n	1	1	1
yield to maturity	5%	5%	5%
What can you conclude from the relationship between bond price and maturity of the bond ?
The flotation cost on all three bond issues is of 2%, calculate the net proceeds of all three bonds