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You are analyzing three different Treasury bonds. All three securities have a 5-year maturity and a...

You are analyzing three different Treasury bonds. All three securities have a 5-year maturity and a face value of $1000. The next coupon payment occurs exactly one year from today. What are the prices of these three treasury bonds? Bond Annual Coupon rate Coupon payment frequency Yield to maturity A 0% Annual 3.00%YTM B 2% Semiannual 2.80%YTM C 4% Annual 2.50%YTM

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Answer #1

Bond A Price = "PV(Rate,Nper,pmt,fv)" = "PV(0.03,5,0,1000)" = $862.61

Bond B Price = "PV(Rate,Nper,pmt,fv)" = "PV(1.40%,10,10,1000)" = $962.92

Bond C Price = "PV(Rate,Nper,pmt,fv)" = "PV(2.50%,5,40,1000)" = $1069.69

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