What is the yield-to-maturity for bond

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1. Bond A pays annual coupons, pays its next coupon in 1 year, matures in 16 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 13 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 4.1 percent and is priced at 735.28 dollars. Bond B has a coupon rate of 6.26 percent. What is the price of bond B?

2. Castor owns one bond A and one bond B. The total value of these two bonds is 2,856.86 dollars. Bond A pays semi-annual coupons, matures in 13 years, has a face value of 1,000 dollars, and pays its next coupon in 6 months. Bond B pays annual coupons, matures in 16 years, has a face value of 1,000 dollars, has a yield-to-maturity of 4.02 percent, and pays its next coupon in one year. Both bonds have a coupon rate of 10.22 percent. What is the yield-to-maturity for bond A? (Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098. )

Reference no: EM131873193

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