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Consider the following two bonds: Bond A Term to maturity: 30 years from today Face value: $1,000 Annual Coupon rate: 6% Number of payments

Consider the following two bonds: Bond A Term to maturity: 30 years from today Face value: $1,000 Annual Coupon rate: 6% Number of payments per year: 2 Current YTM is 8% Bond B 12 Term to maturity: 20 years from today Face value: $1,000 Annual Coupon rate: 8.5% Number of payments per year: 2 Current YTM is 8% The bond price is simply the present value of the each bond.

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