Maturity and coupon rate affect the current price of bonds

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Reference no: EM13825943

Price each bond and explain how the number of years to maturity and the coupon rate affect the current price of bonds. Assume a YTM of 7%.

1. A 4-year bond with a 9% annual coupon

2. A 4-year bond with a zero coupon

3. A 15-year bond with a 9% annual coupon

4. A 15-year bond with a zero coupon

Reference no: EM13825943

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