Use the rates from question 5 one more time. Consider the following bonds, each with a five-year

Question:

Use the rates from question 5 one more time. Consider the following bonds, each with a five-year maturity. Calculate the yield to maturity for each. Which is the better investment (or are they equally attractive)? Each has $1,000 face value and pays couponsannually.

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...