C. Year 15( at a discount rate of 25 %)
D. Each of years 1 through 3( at a discount rate of 12 %)?
3-3
In February 2009 Treasury 6s of 2026 offered a semiannually compounded yield of 3.5965 %. Recognizing that coupons are paid semiannually, calculate the bond ' s price.
3-4
Here are the prices of three bonds with 10-year maturities:
Bond Coupon(%) Price(%)
2 81.62
4 98.39
8 133.42
If coupons are paid annually, which bond offered the highest yield to maturity?