Question
The prices and cash flows over the next 3 years of 3 bonds are given in the table below. Use this information to answer the
The prices and cash flows over the next 3 years of 3 bonds are given in the table below. Use this information to answer the question.
| Bond | Price | Cf1 | Cf2 | Cf3 |
| A | $96.15 | $100 | $0 | $0 |
| B | $90.70 | $0 | $100 | $0 |
| C | $83.96 | $0 | $0 | $100 |
What is the value of a $1,000 face value coupon bond that pays an annual 6% coupon and matures in 3 years?
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Financial Management
Authors: P V V Satyanarayana
1st Edition
9350568012, 9789350568019
