Bonds x and y are identical including the risk class the


Bonds X and Y are identical, including the risk class. The only difference between A and B is in the coupon payment as shown below

Bond X Bond Y

Face value $1000 $1000

Annual coupon payment $120 $130

payment frequency Semiannual Annual

years to maturity 15 15

price $934.71 ????

What is the price of bond Y?

A.$925.88

B.$1,007.15

C.$989.75

D.$956.95

E.$973.44

F.$940.92

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Business Economics: Bonds x and y are identical including the risk class the
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