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i need the functions E A B 1 Problem: 2 A company has issued three bonds (Par Value $1,000) with the following data: 3 4

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i need the functions
E A B 1 Problem: 2 A company has issued three bonds (Par Value $1,000) with the following data: 3 4 What happends to the bond prices as each bond approaches the maturity date? (assume similar bonds 5 with 15 year maturity sell for 10% coupon rate and that this rate stays const. over time) 6 7 Market rate 10% 8 9 Issue date 5 years ago Today 10-years ago Maturity 20 year bond 15 year bond 25 year bond 11 Coupon rate 7% 10% 13% 12 Coupon Payment 70 100 130 13 15 15 15 10 A B Positive Values Positive Values Positive Values 0 1 2 3 4 5 6 7 8 9 10 11 12 13 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 $1,200.00 $1,100.00 $1,000.00 $900.00 $800.00 $700.00 $600.00 $500.00 $400.00 $300.00 $200.00 $100.00 $0.00 Chart Area 0 6 10 15 20

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