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You have the following information about bonds trading in the market with annual coupons: Maturity Coupon Rate Yield 1 year 0% 7% 2 year 5%
You have the following information about bonds trading in the market with annual coupons:
Maturity | Coupon Rate | Yield |
1 year | 0% | 7% |
2 year | 5% | 8.95% |
3 year | 10% | 11.63% |
Find the price and yield of 3 year bonds with face value $ 100,000 and 5% coupon paid annually.
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