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4. Consider four different bonds all having the same yield-to-maturity. Bond A is a consol ihai pays 50vry period forver au ily pr ai SGA.2.

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4. Consider four different bonds all having the same yield-to-maturity. Bond A is a consol ihai pays 50vry period forver au ily pr ai SGA.2. Bod B, C and ID have the same par value of $1,000. However, they differ in their maturity and coupon rate. While bond B and C have a maturity of 3 years, bond D has a maturity of 5 years. Also, bond B and D have a coupon rate of 4.5% whereas bond C has a coupon rate of 7%. [Hint: Coupons are paid annually to faciliate the calculations. Hence, coupon rates are also given annually.]

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