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Bond A pays 7.5% semi-annual coupon interest, with RM810.50 market value and 15 years remaining to maturity. Bond B pays 8.2% semi-annual coupon interest, RM860.25

  1. Bond A pays 7.5% semi-annual coupon interest, with RM810.50 market value and 15 years remaining to maturity. Bond B pays 8.2% semi-annual coupon interest, RM860.25 market value, with 10 years remaining to maturity. Which bond offers a higher yield-to-maturity? Assume the par value be RM1,000.

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