Question: The table below shows information on two bonds. Based on the information in the table, answer the following questions. (3 + 2) Marks Bond Face

The table below shows information on two bonds. Based on the information in the table, answer the following questions. (3 + 2) Marks

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

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

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

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