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Homework 3 Consider two bonds: Bond A: 10 years to maturity; FV = 1,000: Coupon rate = 6% (annual) Bond B: 20 years to maturity:

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Homework 3 Consider two bonds: Bond A: 10 years to maturity; FV = 1,000: Coupon rate = 6% (annual) Bond B: 20 years to maturity: FV = 1,000; Coupon rate = 6% (annual) 1. Assuming interest rate is 6%, calculate the price of each bond 2. Make a table comparing the bond prices when the market interest rate changes from 0% to 20% at 1% increments Infiniti

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