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Computing the price of the bonds

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Reference no: EM131795523

Question: Bond A pays annual coupons, pays its next coupon in 1 year, matures in 19 years, and has a face value of 1,000 dollars. Bond B pays semi-annual coupons, pays its next coupon in 6 months, matures in 15 years, and has a face value of 1,000 dollars. The two bonds have the same yield-to-maturity. Bond A has a coupon rate of 10.28 percent and is priced at 1,590.71 dollars. Bond B has a coupon rate of 6.8 percent. What is the price of bond B?

Reference no: EM131795523

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