What is the current price of bonds a and b

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The Fox Corporation has two different bonds currently outstanding.

Bond A has a face value of $1,000 and matures in 20 years. The bond makes no payments for the first six years, then pays $40 every six months over the subsequent eight years, and finally pays $50 every six months over the last six years.

Bond B also has a face value of $1,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. If the yield-to-maturity of both these bonds is 8 percent, what is the current price of Bonds A and B

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Reference no: EM131417788

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