Question: The table below shows information on two bonds. Based on the information in the table, answer the following questions. Bond Face Value Coupon rate Yield

The table below shows information on two bonds. Based on the information in the table, answer the following questions.

Bond

Face Value

Coupon rate

Yield to Maturity

Term to Maturity

A

$1000

8% paid annually

10%

3

B

$1000

8% paid semi-annually

10%

3

Calculate bond price for bond A and B. Show all calculations.

Explain why are the bond prices for A and B different or the same? Explain your answer clearly.

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