There are two bonds, bond A and bond B, both bonds have annual coupons, maturities in 5 years, nominal values of 10,000 and each one is purchased at an effective annual Yield rate of 4%.

a) Bond A has an annual coupon rate of r%, a redemption value at maturity of 10% under par, and a price of P. b) Bond B has an annual coupon rate of (r + 1)%, a redemption value at maturity of 10% over par, and a price of 1.2P.

* Calculate r% ...