Question: Consider two bonds Bond A and Bond B - both of which have the following characteristics Par is $1,000, Payments are made semi-annually, Coupon

Consider two bonds – Bond A and Bond B - both of which have the following characteristics

Par is $1,000, 

Payments are made semi-annually, 

Coupon rate is 4%, 

Current YTM is 3%, 

Bond A has 5 years to maturity, 

Bond B has 4 years left to maturity.

18. What is the market value of Bond A?

19. What is the market value of Bond B?

20. Why is one more valuable than the other

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