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Q2: Three bonds walk into a bar...Bond A has a face value of $36000, a maturity of 10 years. and a (nominal semi-annual) coupon rate

Q2: Three bonds walk into a bar...Bond A has a face value of $36000, a maturity of 10 years. and a (nominal semi-annual) coupon rate of 2.00%. Bond A and Bond B have the same maturity, but Bond B has a face value of $28800.0. Bond A and Bond C have the same coupon rate but Bond C has a maturity of 9 years. The current (nominal semi-annual) yield rate is 1.00% and all three bonds are trading at the same premium/discount. For each part below, 2 marks for the numerical answer, 3 marks for the correct equation.

a) How much is the premium/discount of Bond A?

b) What is the coupon rate of Bond B?

c) What is the face value of Bond C?

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