Bilal Goldsmith broker has shown him two bonds Each has a maturity of 5 years , a par value of BD 1,000and a yield to maturity of 14 Bond A has a coupon interest rate of 8 paid annually Bond B has a coupon rate of 12 paid annually a Identify the cash flow and illustrate the time line for each bond b Calculate the selling price of each of the bonds

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Bilal Goldsmith broker has shown him two bonds . Each has a maturity of 5 years , a par value of BD 1,000and a yield

Bilal Goldsmith broker has shown him two bonds . Each has a maturity of 5 years , a par value of BD 1,000and a yield to maturity of 14 % . Bond A has a coupon. interest rate of 8 % paid annually Bond B has a coupon rate of 12 % paid annually.

a. Identify the cash flow and illustrate the time line for each bond.

b. Calculate the selling price of each of the bonds.

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