A.
Bond A has the following features:
Face value =
$1,000,
Coupon Rate = 3%,
Maturity = 6 years, Yearly coupons
The market
interest rate is 4.34%
What is today’s price of bond A?
B.
Bond A has the following features:
Face value =
$1,000,
Coupon Rate = 7%,
Maturity = 10 years, Yearly coupons
The market
interest rate is 4.94%
If interest
rates remain at 4.94%, what will the price of bond A be...