Question
Bonds X and Y are identical, including the risk class. The only difference between A and B is in the coupon payment as shown below.
Bonds X and Y are identical, including the risk class. The only difference between A and B is in the coupon payment as shown below.
| Bond X | Bond Y | |
| Face value | $1,000 | $1,000 |
| Annual Coupon Payment | $120 | $130 |
| Payment Frequency | Semiannual | Annual |
| Years to maturity | 15 | 15 |
| Price | $904.55 | ? |
What is the price of bond Y?
| A. | $925.88 | |
| B. | $956.95 | |
| C. | $940.92 | |
| D. | $989.75 | |
| E. | $973.44 | |
| F. | $1,007.15 |
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Finance And Sustainability Proceedings From The Finance And Sustainability Conference Wroclaw 2017
Authors: Agnieszka Bem, Karolina Daszy?ska-?ygad?o , Ta?ána Hajdíková, Péter Juhász
1st Edition
3319922270,3319922289
