Question: You are given two 1,000 par value n-year bonds. Bond A has 14% semiannual coupons and a price of 1,407.70 to yield rate i compounded

You are given two 1,000 par value n-year bonds.

Bond A has 14% semiannual coupons and a price of 1,407.70 to yield rate i compounded semiannually.

Bond B has 12% semiannual coupons and a price of 1,271.80 to yield the same rate i compounded

semiannually.

Calculate the price of bond A to yield (i-1%) compounded semiannually.

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