Question: 3. Two bonds are both rated AA, are $1000 par value, pay coupons annually, and mature in four years. Bond A pays a coupon of

3. Two bonds are both rated AA, are $1000 par value, pay coupons annually, and mature in four years. Bond A pays a coupon of 12%, while Bond B pays a coupon of 4%. The discount rate for debt of this nature is 10%. Foreach bond, determine the:

  1. Current price
  2. Yield to maturity
  3. Current yield

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