Question

What is the price of the bond? Bond Face Value Rate Maturity Yield to Maturity A...

What is the price of the bond?

Bond Face Value Rate Maturity Yield to Maturity
A $500 0.00% 1 Year 4%
B $500 4.00% 2 Years 5.00%
C $500 8.00% 3 Years 5.50%

What are the prices of the bonds?

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Answer #1

Price of bond A is $480.77
Price of bond B is $490.70
Price of bond C is $533.72

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