Question: ABC Corporation has two outstanding bond issues: Issue Term to Maturity Coupon Rate Current Market Price A 7 years 8% $946.50 B 10 years 3%

ABC Corporation has two outstanding bond issues:

Issue Term to Maturity Coupon Rate Current Market Price

A 7 years 8% $946.50

B 10 years 3% $834.90

Assume yields fall by 1%. Based on this information, compute the price migration of the bond and determine the bond that appreciates the most in price. Assume semin-annual bonds.

Fill in the blank. Round two decimal places.

Bond A new price =

Bond B new price =

Which bond appreciated more in price=

Please provide steps to calculate using BA II plus

ABC Corporation has two outstanding bond issues: Issue Term to Maturity Coupon Rate Current Market Price Assume yields fall by 1%. Based on this information, compute the price migration of the bonds and determine the bond that appreciates the most in price. Assume semi-annual bonds. Fill in the blank. Round two decimal places. Bond A new price: Bond B new price: Which bond appreciated more in price: Bond Answer 1: 997.45 Answer 2: Answer 3 : B

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