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We begin with the simple case where we know the bond yield and wish to calculate the bond price. We also begin with the simple

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We begin with the simple case where we know the bond yield and wish to calculate the bond price. We also begin with the simple case of a newly issued bond. Recall the formula is B = 1/2 c/1 + 1/2 y + 1/2 c/(1 + 1/2 y)^2 + ... + 1/2 c/(1 + 1/2 y)^n - 1 + F + 1/2 c/(1 + 1/2 y)^ . Write a function to calculate the above sum. The inputs are (i) double F, (ii) double e, (iii) double y, (iv) int n. The output is (v) double & B. The input value of the yield y is a percentage, so if the yield is 5% then y = 5, Hence remember to compute an internal variable y_decimal = 0.01 y in your code, to avoid "factor of 100" errors. The function signature is void price_from_yield(double F. double c, double y, int n, double k B): Write the function and call it with some sample inputs. (You must write a main program.) Here are some tips to help you to check that your code is working correctly. To keep things simple, the F = 100 in all your tests. There is no point in being too clever. If F = = 100, then if the yield equals the coupon y = c, you should obtain B = F = (= 100). Put y = 0. Then the value of B is a straight sum of the values of the cashflows. Since there are n cashflows of the coupons, obviously B = F + nc/2. Your program should give this value. The bond price B decreases as the yield y increases. (This is in fact a general theorem. It was proved in the 1930s, I think.) Put c = 0. This is known as a zero coupon bond and they do exist. A zero coupon bond pays only one cashflow, which is to pay the face value at maturity, In that case the formula is B_ = F/(1 + 1/2 y)^n. This is a very simple formula and you should be able to calculate the above formula independently (use Excel, for example). Hence you should be able to validate your function, for a zero coupon bond

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