Question: Consider two bonds (A and B) with different coupons and price, but otherwise identical. Par value $ 1000. Remaining maturity is 25 years. Coupons are
Consider two bonds (A and B) with different coupons and price, butotherwise identical.Par value $ 1000. Remaining maturity is 25 years. Coupons are yearly. The last coupon was paid just a second ago. There are 25 more coupons left.CouponA= $ 20. CouponB= $ 30. The price difference is $ 140.9395 (one bond costs $ 140.9395 more than the other bond).Ignore default risk.
5a)Price of A is$______
5b)Price of B is$______
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