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PLEASE SOLVE WITHOUT EXCEL!!!!!! ZERO COUPON BOND VALUATION AND MATURITY DATES Anthony has a choice of one of two bonds to purchase: a 5 -
PLEASE SOLVE WITHOUT EXCEL!!!!!! ZERO COUPON BOND VALUATION AND MATURITY DATES Anthony has a choice of one of two bonds to purchase: a year, $ face value bond with coupons, paid semiannually, or a year, $ face value zero coupon. Both have a yield to maturity of
a How much will each bond cost?
b How much would Anthony pay for similar bonds, assuming a flat yield curve, if they were available in maturity dates of years? years?
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c Explain why the zero coupon bond prices change more than the regular bonds
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