Intro The University of California has two bonds outstanding. Both issues have the same credit...
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Intro The University of California has two bonds outstanding. Both issues have the same credit rating, a face value of $1,000 and a coupon rate of 4%. Coupons are paid twice a year. Bond A matures in 1 year, while bond B matures in 30 years. The market interest rate for similar bonds is 12%. Part 2 H Attempt 1/5 for 10pts. What is the price of bond B ? Now assume that yields increase to 15%. What is the price of bond A? Part 4 Attempt 1/5 for 10pts. What is the price of bond B now
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