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assume you have a 1-year investment horizon and are trying to choose among three bonds. all have the same degree of default risk and mature in 10 years. the first is a zero-coupon bond that pays $1,000 at maturity. the second has an 8% coupon rate and pays the $80 coupon once per year. the third has a 10% coupon rate and pays the $100 coupon once per year. a. if all three bonds are now priced to yield 8% to maturity, what are the prices of (i) the zero-coupon bond; (ii) the 8% coupon bond; (iii) the 10% coupon bond? (round your answers to 2 decimal places.)
Sagot :
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