Question: Bond A has the following features: Face value = $1,000, Coupon Rate = 10%, Maturity = 9 years, Yearly coupon. The market interest rate is

Bond A has the following features: Face value = $1,000, Coupon Rate = 10%, Maturity = 9 years, Yearly coupon. The market interest rate is 5.91%. If interest rates remain at 5.91%, what will the price of bond A be in year 1?

Bond B has the following features: Face value = $1,000, Coupon Rate = 4%, Maturity = 9 years, Yearly coupons. The market interest rate is 3.37%. What is todays price of bond A?

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