What is the current market price for bond

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Please answer these questions and show complete working of solution in detail and kindly confirm each answer before sending. Suppose you are asked to analyze three bonds. Bond A matures in 1 year, Bond B matures in 5 years, and Bond C matures in 15 years. Each of the three bonds has a coupon rate of 6% (paid annually) and a yield to maturity is 3.8%.

(a). What is the current market price for each bond?

(b). Compute a new market price for Bond A, Bond B and Bond C at the following two yields to maturity:

YTM = 5%

YTM = 10%.

(c). Compute a new market price for Bond A, Bond B and Bond C in case the coupon rate is increased to 8% and coupon is paid:

Semiannually

Quarterly

(d). Also calculate the effective rate for monthly coupon payment whereas the coupon rate is 9%

Reference no: EM132544312

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