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Bond A pays annual coupons pays ins next coupon in one year, matures in 23 years and has a face value of one thousand. Bond
Bond A pays annual coupons pays ins next coupon in one year, matures in 23 years and has a face value of one thousand. Bond B pays semi annual coupons pays its next coupon in six months, matures in three years and has a face value of one thousand. The two bonds have the same yield to maturity. Bond A has a coupon rate of 7.70 percent and is priced at $736.19. Bond B has a coupon rate of 6.40 percent. What is the price of bond B?
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