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Exercise 1 a. Calculate the bond price for each 3 bonds b. Specify which bonds is trading at a par, discount or premium and c.
Exercise 1 | |||
a. Calculate the bond price for each 3 bonds | |||
b. Specify which bonds is trading at a par, discount or premium and c. explain how you could have guessed it without calculating the bond prices | |||
Bond A | Bond B | Bond C | |
Maturity t | 5 | 5 | 5 |
Coupon | 4% | 4% | 4% |
Yield-to-maturity YTM | 2% | 4% | 6% |
Face value FV | 100 | 100 | 100 |
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