Question: Bond A is a 9 percent coupon bond while Bond B is a 5 percent coupon bond. Both bonds make annual payments, have a YTM

Bond A is a 9 percent coupon bond while Bond B is a 5 percent coupon bond. Both bonds make
annual payments, have a YTM of 7 percent, and have 10 years to maturity. The par value for both
bonds is $1,000.
(a) Which bond is a premium bond? Which bond is a discount bond? Explain without calculation.
(b) Calculate the price of both bonds.
(c) Calculate the current yield for both bonds.
Bond A is a 9 percent coupon bond while Bond B

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