Question: You have a choice between two bonds. Bond A makes yearly payments and has a maturity of 20 years and a coupon rate of 10%.

You have a choice between two bonds. Bond A makes yearly payments and has a maturity of 20 years and a coupon rate of 10%. Bond B has a maturity of 15 years and makes semi-annual payments at a coupon rate of 11.3%. The nominal value of both bonds is R10 000 and the yield-to-maturity is 11.2% i. What is the value of Bond A? [5 marks] ii. What is the value of Bond B? [5 marks] iii. Which bond is selling at

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