If the two bonds are expected to be similar in risk what, Financial Management

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If the two bonds are expected to be similar in risk what

McIntire Corp. is considering the issue of $1,000 face value, 20 year, 9 percent coupon bonds. The bonds will make coupon payments on a semi-annual basis. It observes that bonds of Barrett Company are trading at $1079.31, have the same maturity date and pay an annual coupon of 10 percent. If the two bonds are expected to be similar in risk, what price will a bond of McIntire Corp. sell for?

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Financial Management: If the two bonds are expected to be similar in risk what

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