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full answer plz 1 Three bonds walk into a bar...Bond A has a face value of $16,000, a maturity of 7 years, and a (nominal
full answer plz
1
Three bonds walk into a bar...Bond A has a face value of $16,000, a maturity of 7 years, and a (nominal semi-annual) coupon rate of 4.000%. Bond A and Bond B have the same maturity, but Bond B has a face value of $11,200. Bond A and Bond C have the same coupon rate but Bond C has a maturity of 5 years. The current (nominal semi-annual) yield rate is 2.000% and all three bonds are trading at the same premium/discount. For each part below, 2 marks for the numerical answer, 3 marks for the correct equation. a) How much is the premium/discount of Bond A? b) What is the coupon rate of Bond B? c) What is the face value of Bond C Step by Step Solution
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