5. Consider the following two bonds: Bond A Bond B Face value $1,000 $1,000 Coupon rate (annual) 8% 8% YTM 9% 7% Maturity 10 years 10 years Calculate the price for each bond. What is the primary factor affecting the prices of the bonds? Indicate which bond is premium and which one is discount. Is there any relationship between the YTM and the coupon rate in case of premium/discount bonds? Now, consider the following two bonds: Bond XBond Y Face value $1,000 $1,000 Coupon rate (annual) 8% 8% YTM 11% 11% Maturity 5 years 10 years Calculate the price for each bond. What is the relationship between bond price and maturity, all else equal? 6. A bond with a par value of $1,000 and a maturity of 8 years is selling for $925. If the annual coupon rate is 7%, what's the yield on the bond? What would be the yield if the bond had quarterly payments? 7. A bond has a par value of $1,000, a time to maturity of 8 years, and a coupon rate of 10% with interest paid annually. If the current market price $875, what will be the approximate price of this bond at the end of the first year