Intro

The University of California has two bonds outstanding. Both issues have the same credit rating, a face value of $$1,000$ and a coupon rate of $4\%.$ Coupons are paid twice a year Bond A matures in $1$ year, while bond $B$ matures in $30$ years.

The market interest rate for similar bonds is $10\%.$

Part $1$

Attempt $\frac{1}{10}$ for $10$ pts

What is the price of bond $A?$