Question: 5-6. Two 10-year 100 face value bonds, each redeemable at par, have 8% and 10% semiannual coupons and are priced at A1 and A2, res-

 5-6. Two 10-year 100 face value bonds, each redeemable at par,

5-6. Two 10-year 100 face value bonds, each redeemable at par, have 8% and 10% semiannual coupons and are priced at A1 and A2, res- pectively, to give the same yield. Prove that the price of a 10-year 100 face value bond, with a redemption value of I 10 and 9% semi- annual coupons, is, at the same yield rate, equal to A1 +10.42

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