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Bond A pays annual coupons, pays its next coupon in 1 year, matures in 12 years, and has a face value of 1,000 dollars.Bond B
Bond A pays annual coupons, pays its next coupon in 1 year, matures in 12 years, and has a face value of 1,000 dollars.Bond B pays semi-annual coupons, pays its next coupon in 6 months, matures in 16 years, and has a face value of 1,000 dollars.The two bonds have the same yield-to-maturity.Bond A has a coupon rate of 5.54 percent and is priced at 773.93 dollars.Bond B has a coupon rate of 11.46 percent.What is the price of bond B?
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