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(b) Consider two 20-year bonds, each having semi-annual coupons and each maturing at par. The yield rate for both bonds is the same. One bond

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(b) Consider two 20-year bonds, each having semi-annual coupons and each maturing at par. The yield rate for both bonds is the same. One bond has a par value of RM380 and a coupon of RM45. The other bond has a par value of RM1,000 and a coupon of RM30. Calculate the difference of the bonds' price if the yield rate is 5% convertible semi- annually

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