Question: 45. (7 points) An analyst observes these reported statistics for two bonds. Bond A Bond B Annual Coupon Rate 8.00% 12.00% Coupon Payment Frequeney Semi-annually

45. (7 points) An analyst observes these reported statistics for two bonds. Bond A Bond B Annual Coupon Rate 8.00% 12.00% Coupon Payment Frequeney Semi-annually Quarterly Years to Maturity 5 Years 5 Years Price (per 100 of par value) 90 105 The analyst believes that Bond B has a little more risk than Bond A. How much additional compensation, in terms of higher YTM, does a buyer of Bond B receive for bearing this risk compared with bond A

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