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

i. Calculate bond price 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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