Question: John Smith broker has shown Alex two bonds. Each has a maturity of 5 years, a par value of RM1,000, and a yield to maturity

John Smith broker has shown Alex two bonds. Each has a maturity of 5 years, a par value of RM1,000, and a yield to maturity of 12%. Bond A has a coupon interest rate of 6% paid annually. Bond B has a coupon interest rate of 14% paid annually. Calculate the fair price of each of the bonds, Bond A and Bond B

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