Ms$.$ Alumm is the portfolio manager for a large insurance company. She is considering investing $$1$ million to purchase some bonds of Patriot Enterprises, Inc.

All of Patriot$$s bonds have market prices that imply a yield to maturity of $8\%$bond equivalent yield$($that is $4\%$ every $6-$month period$)\mathrm{.}1$ Each Patriot bond is described here, based on a $$1,000$ face value $($par value$),$ which is the promised payment at maturity.

$$ Bond A matures in five years and pays a $9\%$ coupon yield $($$$45$ every $6$ months on a $$1,000$ face value bond$).$

$$ Bond B matures in ten years, pays an $8\%$ coupon yield $($$$40$ seminannual payments$),$ and is being offered at par.