17) The University of California has two bonds outstanding. Both issues have the same credit rating, a face value of $1,000 and a coupon rate of 5%. Coupons are paid twice a year. Bond A matures in 1 year, while bond B matures in 30 years. The market interest rate for similar bonds is 11%. SOLVE PART 1-4

Problem 17 Intro The University of California has two bonds outstanding. Both issues have the same credit rating, a face value of $1,000 and a coupon rate of 5%. Coupons are paid twice a year. Bond A matures in 1 year, while bond B matures in 30 years. The market interest rate for similar bonds is 11%. | Attempt 1/6 for 10 pts. Part 1 What is the price of bond A? 0+ decimals Submit Part 2 | Attempt 1/6 for 10 pts. What is the price of bond B? 0+ decimals Submit Part 3 B | Attempt 1/6 for 10 pts. Now assume that yields increase to 14%. What is the price of bond A? 0+ decimals Submit Attempt 1/6 for 10 pts. Part 4 What is now the price of bond B? 0+ decimals Submit