There are 3 bonds in the market: Bond Coupon rate (%) Maturity YTM (%) A 0 1 8 B 9 2 7 C 7 2 9 Coupon payments are annua
Posted: Tue Jan 18, 2022 12:59 pm
There are 3 bonds in the market:
Bond
Coupon rate (%)
Maturity
YTM (%)
A
0
1
8
B
9
2
7
C
7
2
9
Coupon payments are annual and bid-ask
spreads are zero.
Time
Projects
0
1
A
3,000
600
B
-8,000
12,000
C
5,000
-3,000
Find the range of
the discount rate that ensures project B is better than projects A
and C.
Bond
Coupon rate (%)
Maturity
YTM (%)
A
0
1
8
B
9
2
7
C
7
2
9
Coupon payments are annual and bid-ask
spreads are zero.
Time
Projects
0
1
A
3,000
600
B
-8,000
12,000
C
5,000
-3,000
Find the range of
the discount rate that ensures project B is better than projects A
and C.