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i need part a and part b solved Check my work Problem 10-38 (Algo) Assume you have a one-year investment horizon and are trying to
i need part a and part b solved
Check my work Problem 10-38 (Algo) Assume you have a one-year investment horizon and are trying to choose among three bonds. All have the same degree of default risk and mature in 8 years. The first is a zero-coupon bond that pays $1,000 at maturity. The second has an 8.2% coupon rate and pays the $82 coupon once per year. The third has a 10.2% coupon rate and pays the $102 coupon once per year. Assume that all bonds are compounded annually. Required: ces a. If all three bonds are now priced to yield 8.2% to maturity, what are their prices? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Zero 8.2% Coupon 10.2% Coupon Current prices b. If you expect their yields to maturity to be 8.2% at the beginning of next year, what will their prices be then? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Zero 8.2% Coupon 10.2% Coupon Price one year from now Step by Step Solution
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