Today, on Nov 15, 2023, you decide to diversify your retirement portfolio and talk to your financial advisor about investing in bonds. She recommends two different bonds (Bond A and Bond B), both of which have a $1,000 face value and pay semi-annual coupons. Bond A has a 4.5% coupon rate and matures on Nov 15, 2035. Bond B has a 3.5% coupon and matures on Nov 15, 2026. Your advisor mentions that the yield to maturity Bond A is 4.20% and Bond B traded at their in-house bond desk for a quoted price of 97.20.

SHOW ALL YOUR WORK!

a) What is the price of Bond A?

b) What is the current yield of Bond A?

c) What is the current yield for Bond B?

d) What is the yield to maturity on Bond B?