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4 7-7-(Bond relationship) ITB Plc. has recently issued three alternative coupon bonds with different times to maturity, BOND ANNUAL COUPON RATE MATURITY (YEARS) A 6

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4 7-7-(Bond relationship) ITB Plc. has recently issued three alternative coupon bonds with different times to maturity, BOND ANNUAL COUPON RATE MATURITY (YEARS) A 6 B 10 2 8 a. Calculate the market price of each bond, assuming a yield to maturity of 8 percent (face value = $1,000). b. Which bond is more volatile? Why? C to Der

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