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The YTM is equal to 10.00%. We have the following bonds with a nominal value equal to 1 000 $: 3-year coupon bond with coupon

The YTM is equal to 10.00%. We have the following bonds with a nominal value equal to 1 000 $:

  • 3-year coupon bond with coupon rate equal to 12.0% and coupon payable four times a year, to redeem bonds remains 18 months,
  • 6-year zero-coupon bond, to redeem bonds remains 18 months.
  1. Calculate the bond prices,
  2. Which bonds are worth buying if their prices are equal to 1 030 $ and 860 $, respectively?

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