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Find the price of the special bond

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Question -

a) A two-year 6% coupon bond (paying annually) with face value $100 is sold for $102. Find its yield to maturity.

b) Find the price of the following special bond which is issued on January 1, 2022. It has face value $100 and matures in 20 years (on January 1, 2042). It has the following unusual coupon payments: 6 dollars every January 1 and 4 dollars every July 1. Assume the yield curve is flat at 8%.

Reference no: EM133031496

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