you like to buy two bonds. both bonds have a coupon rate of 8 percent, a face value of $1000 and a yied to maturity of 8%. bond A has 12 year to maturity and coupons will be paid annually while bond B has 4 years to maturity and the coupons will be paid semiannually.

1. compute the current values of the bonds A and B

2. if the yied to maturity will decrease to 6%, how much wull be the current values of the bonds A and B

3. justify your answer of yhe question 2.

4. explain briefly, with your own words, the difference between making investment in stocks and making investment in bonds.

You to buy two bonds to ons we be paid wide on 1. Computer burrent of the bonds And 2. y lo maturity will dechow You are of the Question 21 Exprey with your own words the fact For the TOPCJA Bus LX LO 'S NO $ 4 % 5 3 6 2 0 Q W E R UNU F F D G H A S B V C N do alt command option You like to buy two bonds. Both bonds have concert Coupons will be paid annually while Bond Bhayan 1. Compute the current values of the bonds A and B (2 2. the yield to maturity will create 10 how much it theo Just your answer of the question 21 4. Explain briefly, with your own words, the best For the toolbar, press ALT F10 O ALTRO I XOOO B TV5 Paragraph Moving to another question will save the $ BO 93 OP a> 2 ugl $ 4 sc 3 2 T 20 E Q G H F F D S A VIB C K X 1 You to buy two bonds to ons we be paid wide on 1. Computer burrent of the bonds And 2. y lo maturity will dechow You are of the Question 21 Exprey with your own words the fact For the TOPCJA Bus LX LO 'S NO $ 4 % 5 3 6 2 0 Q W E R UNU F F D G H A S B V C N do alt command option You like to buy two bonds. Both bonds have concert Coupons will be paid annually while Bond Bhayan 1. Compute the current values of the bonds A and B (2 2. the yield to maturity will create 10 how much it theo Just your answer of the question 21 4. Explain briefly, with your own words, the best For the toolbar, press ALT F10 O ALTRO I XOOO B TV5 Paragraph Moving to another question will save the $ BO 93 OP a> 2 ugl $ 4 sc 3 2 T 20 E Q G H F F D S A VIB C K X 1