You are advising a client with two bond investments. Bond A is a zero coupon with face value 1000 maturing in 8 years . Its current price is 676.84. Bond B has an annual coupon rate 6% and semiannual interest payments. It also has a face value 1000 and mature in 8 years. Bond B ha market value 939.53. Your client will hold one of the bond for 5 years

A- yield to maturity for bond A is 5%. Compute yield to maturity for bond B.

B-you require a 6.4%. Annual rate of return to invest in bond B. What is the maximum amount you'd be willing to pay for this bond?

C- after 5 years you expect the price of bond A to be 813.50, providing yield of 3.74%. Bond B expected market value in 5 years is 950.44.

Compute the realized yield for bond B over the 5 years holding period. Which bond is better