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Problem 1 Let P ( YTM ) denote the bond pricing equation for perpetual, zero - coupon, and coupon paying bonds as a function of

Problem 1
Let P(YTM) denote the bond pricing equation for perpetual, zero-coupon, and coupon paying bonds as a function of the yield-to-maturity (YTM).
Perpetual bonds: P(YTM_p)= C/YTM_p
Zero-coupon bonds: P(YTM_a)= F/(1+YTM_a)?m
Coupon-paying bonds: P(YTMp)=C(1+YTMP)1+C(1+YTMp)2+dots+C(1+YTMp)2m+ F/(1+YTM_p
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