Problem:
You have gathered the following data on three bonds:
| Bond |
Maturity |
Coupon % |
| A |
10 yrs |
9 |
| B |
9 yrs |
1 |
| C |
5 yrs |
5 |
If the market's required return on all three bonds is 6% what are the market prices of the bonds ( you can assume annual interest payments)
Note: Please show how you came up with the solution.