Question: ch 13 prob 8 Bond A has the following terms (assume annual coupons) coupon rate 10% principal $1000 term to maturity 8 years Bond B

ch 13 prob 8
Bond A has the following terms (assume annual coupons)
coupon rate 10%
principal $1000
term to maturity 8 years
Bond B has the following terms
coupon rate 5%
principal $1000
term to maturity 8 years
What is the price of bond A if interest rates are 10%? Enter just the number to the nearest dollar, no symbols or commas.
(Hint: think of the relationship between coupon rate and yield and how that affects bond price)

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