Show the cash flows and prices for the following four bonds, each with a par value of$1,000 and paying interest semi-annually: Which of the four bonds would you prefer to hold and why?

IMPORTANT: SHOW FORMULAS USED TO CALCULATE

# Coupon Rate Years to Maturity Market Yield 2.88% 9 6.15 B 2.35% 5 4.8 C 3.22% 3 2.2 D 0.0% 10 3.1 A E B A C B D 1 D 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Yield Price 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0