1a) What is the price of Bond A?

• $846.90
• $703.90
• $921.12
• $628.78

1b) What is the price of Bond B?

• $846.90
• $703.90
• $921.12
• $628.78

1c) What is the price of bond A if the ytm changes to 9.4%?

• $722.53
• $537.16
• $815.90

1d) What is the price of bond B if the ytm changes to 9.4%?

• $722.53
• $537.16
• $815.90

Consider the following two bonds. Assume that coupon interest payments are made semi- annually and that par value is $1,000 for both bonds. Bond A Bond B Coupon rate (semi-annual) Time to Maturity Yield to Maturity (semi-annual) 5% 5% 5 years 25 years 7.2% 7.2%