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A Consol bond and a 1 year zero-coupon bond have the same Yield to Maturity (YTM) and the same Price . The Consol carries a

A Consol bond and a 1 year zero-coupon bond have the same Yield to Maturity (YTM) and the same Price. The Consol carries a coupon rate of 10%, payable annually, starting 1 year from today.

a) What is the Yield to Maturity (YTM) of the two Bonds (its the same number for both)?

b) What is the Price of the two Bonds (its the same number for both)?

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