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Problem 3: Price and yield to maturity (3 points) A 10-year lxnd was just issued with a face value of $100, and a coupon rate
Problem 3: Price and yield to maturity (3 points) A 10-year lxnd was just issued with a face value of $100, and a coupon rate of 2%. Its coupons are paid semi-annually. Its first coupon is six months from now, and it pays a final coupon at maturity. (a) If the bond's yield to maturity is 1% (APR), what is its price today? Bond price: (b) Ifthehend's ywkd to maturity is 2% (APR), what its pr r lo lay? Bond price: (e) If the bond's yield to maturity is 3% (APR), what is its price today? Bond price
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