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QUESTION 3 What is the price of a 5-year, 4%-coupon bond with a yield-to-maturity of 5.0%? Assume the bond has a par value of $1,000

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QUESTION 3 What is the price of a 5-year, 4%-coupon bond with a yield-to-maturity of 5.0%? Assume the bond has a par value of $1,000 and pays coupons semi-annually. QUESTION 4 Consider two bonds that each have a par value of $1,000 and pay coupons semi-annually. Bond A is a 4-year, 2.25%-coupon bond with a yield-to-maturity of 5.35%, and bond B is a 4-year, 2.25%-coupon bond with a yield-to-maturity of 5.65%? Agree or disagree: the price of bond A is larger than the price of bond B. Agree Disagree

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