Question 3

You have the following information on three bonds: Bond 1, Bond 2, and Bond 3.

1. Find the annual coupon rate for Bond 1.
2. Find the price of Bond 2.
3. Find the yield to maturity (YTM, annualized) of Bond 3.

Please answer each part of the question in as much detail as possible, writing out/ explaining each step. It is greatly appreciated & will receive a thumbs up!

Bond Price Coupon YTM Time to maturity Bond 1 1002 ? Bond 2 ? 2.5% Bond 3 998 3% Assume semi-annual coupon payments. 2% 1.5% ? 7 years 15 years 4.5 years