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Interest rates are equal to 6% for every maturity. A 3-year bond with face value $800 offers an annual coupon rate of 8%. A 2-year
Interest rates are equal to 6% for every maturity. A 3-year bond with face value $800 offers an annual coupon rate of 8%. A 2-year bond with an annual coupon $60 sells at par. What is the price of the 2-year bond? a. $1200 b. $600 c. $500 d. We cannot tell without knowing the face value e. $750 f. $1000 g. $800 h. $1500
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