A. Bond A has the following features: Face value = $1,000,
Coupon Rate = 4%, Maturity = 6 years, Yearly coupons The market
interest rate is 4.05% If interest rates remain at 4.05%, what will
the price of bond A be in year 1?
B.Bond B has the following features:
Face value =
$1,000,
Coupon Rate = 4%,
Maturity = 4 years, Yearly coupons
The market
interest rate is 5.04%
If interest rates remain at 5.04%, what is...