Show the cash flows and prices for the following four bonds, each with a par value of $1,000 and paying interest semi-annually:

#	Coupon Rate	Years to Maturity	Market Yield
A	1.5%	10	4.15
B	4.4%	6	5.0
C	6.2%	5	4.2
D	0.0%	9	5.1

Which of the four bonds would you prefer to hold and why?

(Answer in the box provided and show excel formulas used.)

	A	B	C	D
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