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The company was presented with a new investment opportunity. To take advantage of this opportunity the company decided to issue in 31/12/2017 the following bonds:
The company was presented with a new investment opportunity. To take advantage of this opportunity the company decided to issue in 31/12/2017 the following bonds: Bond A Bond B Bond C Time Left to Maturity (years) 2 D Face Value E100 E100 E100 Coupon Rate 0% 0% 1.8% YTM 1.8% B 2.4% Bond price A C 698.84 The investors perceive all these bonds (A, B and C only) have the same type of risk. The risk from these bonds is different from the bond in a) due to extra collateral provided by the company. b. Find the missing values on the previous table. Present all the necessary computations
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