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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?
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Corporate Finance For Dummies
Authors: Michael Taillard
2nd Edition
1119850312, 978-1119850311
