Question: Without using excel and with real computations please answer this question by showing the different steps and calculations: Bond A Bond B Face Value $1000
Without using excel and with real computations please answer this question by showing the different steps and calculations:
| Bond A | Bond B | |
| Face Value | $1000 | $1000 |
| Semiannual Coupon | $50 | $40 |
| Years to maturity | 25 | 25 |
| Price | 115000 | ? |
Exercise 3:
If the following bonds are identical except for coupon, what is the price of bond B?
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