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Logan Corp. issued a non - callable bond that has 1 6 years to maturity, an 7 % semi - annual coupon, and a $

Logan Corp. issued a non - callable bond that has 16 years to maturity, an7% semi - annual coupon, and a $1.000 par value. Your required return on the Logan Corp. Bond is 9%; if you buy it, you plan to hold it for 12 years.You (and the market) have Expectations that in 12 years, the yield to maturity on a 4- year bond with similar risk will be 6%.A) how much should you be willing to pay for the Logan Corp. Bond today?B) Does the Logan Corp. Bond face greater or less price risk than a bond with 16 years to maturity and a 3% semi annual coupon?

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