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7. If the following bonds are identical except for coupon, what is the price of bond B? The bonds pay interest semiannually Solve for the
7. If the following bonds are identical except for coupon, what is the price of bond B? The bonds pay interest semiannually Solve for the missing variable for Bond A and use that to find the price of Bond B.
Bond A Bond B
Face value $1,000 $1,000
Annual coupon $80 $100
Years to maturity 25 25
Price $1,250 ??
Bond A N I PV PMT FV
Bond B N I PV PMT FV
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