Bond A has a 7.5% semiannual coupon, matures in 12 years, and has a $1,000 face value.

Bond B has a 10% semiannual coupon, matures in 12 years, and has a $1,000 face value.

Bond C has an 11.5% semiannual coupon, matures in 12 years, and has a $1,000 face value.

Each bond has a YTM of 10%.

E. Price each bond and explain how the number of years to maturity and the coupon rate affect the current price of bonds. Assume a YTM of 7%.

1. A 4-year bond with a 9% annual coupon

2. A 4-year bond with a zero coupon

3. A 15-year bond with a 9% annual coupon

4. A 15-year bond with a zero coupon