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Please provide the relevant formulas and calculate the results. There are three different bonds Bond A has a 5% annual coupon, matures in 12 years,

Please provide the relevant formulas and calculate the results.

There are three different bonds

  • Bond A has a 5% annual coupon, matures in 12 years, and has a $5,000 face value.
  • Bond B has a 9% annual coupon, matures in 12 years, and has a $2,000 face value.
  • Bond C has an 15% annual coupon, matures in 12 years, and has a $1,000 face value

The interest rate is 9%

  1. Calculate the price of each of the three bonds at time zero. compounded annually.
  2. For bond A, keep other variables in constant, the compounded period is monthlyright now, whats the bond A s valuation?
  3. For bond C, keep other variables in constant, the compounded period is quarterlyright now, whats the bond C s valuation?
  4. Can you figure out the relationshipbetween compounded period and bond valuation?

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