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You are given the following information about zero-coupon bonds with different maturities. All of these bonds have $1,000 face value: Bond Maturity Price Bond A
You are given the following information about zero-coupon bonds with different maturities. All of these bonds have $1,000 face value:
Bond | Maturity | Price |
Bond A | 0.5 years | 943.4 |
Bond B | 1 year | 873.44 |
Bond C | 1.5 years | 772.18 |
A) Calculate the yield-to-maturity for each bond.
B) You own a fourth bond, trading in the same market and with identical credit risk as the zero-coupon bonds presented
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