What would be the estimated price of bond today

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Develop and submit a 3-4 page (double-spaced) tutorial of key bond characteristics and terms. Your tutorial should address the major issues in bond valuation. In addition to the main pages of your tutorial, provide solutions to the following example problems. Your tutorials of these example problems should provide a qualitative explanation of the characteristics of the problems and of your valuation solution, as well as implications of the valuation model, such as how various parameters could be investigated more.

Bond Example 1: A zero coupon Treasury bond is scheduled to pay $1000 in 25 years. If the current Treasury yield rate on this maturity of bonds is 4.5% YTM (APR), what would be the estimated price of this bond today?

Bond Example 2: A corporate bond has a 7.5% annual coupon rate and pays coupons semiannually. The bond has 20 years remaining to maturity and is rated AAA. Bonds of this rating are currently priced to provide a 6.5% YTM. What would be the estimated price of this bond today?

Reference no: EM13214502

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