Question: Miles owns one bond A and one bond B . The total value of these two bonds is $ 2 , 1 1 0 .

Miles owns one bond A and one bond B. The total value of these two bonds is $2,110.00. Bond A pays semi-annual coupons, matures in 11 years, has a face value of $1,000.00, and pays its next coupon in 6 months. Bond B pays annual coupons, matures in 3 years, has a face value of $1,000.00, has a yield-to-maturity of 11.13 percent, and pays its next coupon in one year. Both bonds have a coupon rate of 8.16 percent. What is the yield-to-maturity for bond A?
5.88%(plus or minus 2bps)
2.20%(plus or minus 2bps)
6.57%(plus or minus 2 bps)
1.78%(plus or minus 2bps)
 Miles owns one bond A and one bond B. The total

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