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Bond A and bond B both pay annual coupons, mature in 8 years, have a face value of $1000, pay their next coupon in 12
Bond A and bond B both pay annual coupons, mature in 8 years, have a face value of $1000, pay their next coupon in 12 months, and have the same yield-to-maturity. Bond A has a coupon rate of 6.5 percent and is priced at $1,056.78. Bond B has a coupon rate of 7.4 percent. What is the price of bond B? | |||||||||||||
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